1. By this petition, filed under section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “Said Arbitration Act”), petitioner has impugned the arbitral award rendered by the arbitral tribunal on 18th June, 2009 directing the petitioner to indemnify the respondent by creation of a fund under the control of respondent and deposit the sum of Rs.26,30,662/- and Rs.58,170/- together with interest on the sum of Rs.26,30,662/- at the rate of 30% p.a., from 21st July, 2005 till 13th February, 2007 and further interest on the sum of Rs.26,30,662/-, at the rate of 10% from 14th February, 2007 till actual deposit.

2. The arbitral tribunal directed the petitioner to keep the said amount in a fixed deposit of a nationalized Bank of their choice within four weeks from the date of the said award. Petitioner was directed to deposit the said amount initially for the period of one year and was directed to keep the said fixed deposit renewed till such time as the appeals and further appeals which may be filed were finally disposed of. Some of the relevant facts for the purpose of deciding this petition are as under:

3. By letter dated 9th December, 1997, M/s. Ta