By this petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short “the said Arbitration Act”), the petitioner has impugned the arbitral award dated 30th March 2000 made by the learned arbitrator allowing the claims made by respondent no.2 and directing the petitioner to pay a sum of Rs.48,11,103/- to the respondent no.2 with interest @7% p.a. from the date of claim till the date of award and @18% p.a. from the date of award till the date of payment. Some of the relevant facts for the purpose of deciding this petition are as under :-

2. The petitioner was the original respondent in the arbitration proceedings whereas the respondent no.2 was the original claimant. On 6th July 1993, respondent no.2 entered into an agreement for sale/supply of kerosene oil on the terms and conditions set out therein. It was provided in the said agreement that the said agreement shall come into force on 6th July 1993 and shall remain for a period of one year during which period the buyer shall get the requirements of superior kerosene oil (SKO) through Indian Oil Corporation Ltd. (IOC); provided nothing contained in clause 1 shall prejudice the rights of IOC to terminate this agreement earlier on the happening of any of the events specified in clause 10.7 of the said agreement. Under clause 4.1 of the agreement, it was provided that sale of SKO will be made by IOC from time to time through import.

3. Under clause 5.1 of the agreement, it was agreed that for each import parcel that may be required by the buyer, the IOC shall establish provisional cost and freight (C & F) price in Indian Rupees which was required to be worked out in accordance with the said clause. Demurrage was payable @100/ MT. Under clause 5.2 of the said agreement, it was provided that IOC will work out the final price for each parcel sold to the buyer on the basis mentioned therein by including the elements set out therein within a period of 45 days from the date on which the provisional price was established for the same. Under clause6.1 of the agreement, it was provided that the buyer shall open a confirmed irrevocable letter of credit without recourse to drawers 30 days in advance of the expected arrival of the cargo in favour of IOC through SBI duly confirmed by its commercial branch, Bombay. The letter of credit to be opened by the buyer shall be in a format as advised by IOC and acceptable to IOC.

4. Under clause 6.2 of the agreement, it was agreed that the payment under the letter of credit shall be based on the bill of lading quantity. Clause 10.2 of the said agreement which is relevant for the purpose of deciding this matter is extracted as under :-

“10.2 CLAIMS :

Any claim regarding quality, quantity, demurrage, non-delivery or otherwise which either party may have against the other party shall be filed with that other party within 150 days from the date of delivery of the product to the buyer or the last date on which such delivery should have been made (hereinafter referred to as “the Delivery date”). If such claim is not admitted in full within 90 days of its being filed with the other party, it shall automatically lapse and be forfeited and the other party against whom it is made shall be discharged of all liability with regard thereto unless arbitration proceedings in respect thereof are commenced and notice thereof is given within 360 days of the delivery date to the party against whom the claim is made.”

Clause 11 of the agreement provides an arbitration clause.

5. By letter dated 20th December 1993, the respondent no.2 informed the petitioner about revision in settled terms of the original agreement dated 6th July 1993 and informed that the said revision shall constitute as an integral part of the agreement dated 6th July 1993 and that all other clauses of the agreement dated 6th July 1993 shall remain unaltered.

6. On 6th July 1994, the petitioner and respondent no.2 signed an agreement thereby reviving and extending the said