(PER DR. D.Y. CHANDRACHUD, J.):

I

An Arbitration Petition was instituted by the Oil and Natural Gas Corporation Ltd (ONGC) under Section 30 of the Arbitration Act, 1940, in order to challenge an award of a sole Arbitrator. The Arbitration Petition was dismissed by a Learned Single Judge on 1st October 1997. ONGC is in appeal. At the hearing of the appeal, submissions have been confined to four grounds of challenge, these being: (i) The Arbitrator adjudicated upon matters excepted from the arbitration clause and assumed jurisdiction where he had none; (ii) The award is contrary to contractual provisions; (iii) There was an error apparent on the face of the record by the Arbitrator in rejecting the claim for liquidated damages as not proved; and (iv) The award of interest is contrary to the provisions of the contract. Upon hearing Counsel for the parties, our conclusion is that there is no merit in the challenge and the appeal must fail.

II

2. ONGC is a Public Sector Undertaking which engages in oil exploration, and in the development, production and treatment of oil and natural gas. The Respondent (DIK) is a Company incorporated under the Companies' Act, 1956 and carries on t