Dr. B.P. Saraf, J. - This appeal is directed against the judgment and order dated 12th December, 1994 of the learned single Judge dismissing the Arbitration Petition No.127 of 1991 filed by the appellants.

2. The material facts of the case, briefly stated, are as follow: In the year 1978, tenders were invited by the appellants, the Municipal Corporation of Greater Bombay ("Corporation"), for installing the crematorium furnaces in Bombay. In pursuances of the above tender invitation, tender has submitted by the respondent No.1, Thermal Engineering Corporation, on 1st February 1979. The Corporation accepted the said tender and issued the work order on 2nd November 1979. As per the work order, respondent No.1 was required to complete the construction of two crematorium furnaces within 11 months. The respondent No.1, however, could not start the work because of the strike resorted to by the sand suppliers, which continued till October 1980. During this interregnum, the prices of the materials covered by the work order escalated. Under those circumstances, the respondent No.1 wanted to terminate the above contract and accordingly, by its letter dated 13th October, 1981, request