JUDGMENT :

Nitin Jamdar, J.

This appeal filed under section 37 of the Arbitration and Conciliation Act, 1996, challenges the judgment and order passed by the learned Single Judge dated 5 June 2006 in the arbitration petition filed by the Respondent- Ion Exchange (India) Limited. By the impugned order, the learned Single Judge had set aside the arbitral award dated 31 March 2005 passed in favour of the Appellant-Paramount Limited, the Claimant before the Arbitrator.

2. In this judgment, the Appellant- is referred to as "Paramount". Respondent- Ion Exchange (India) Limited is referred to as “Ion Exchange”. Briefly, the dispute arose in the following facts. The Gujarat Electricity Board had invited tenders for the Turnkey Project for the Sikka Thermal Power Project Pretreatment Plant. Paramount and Ion Exchange signed a Memorandum of Understanding to bid with the Gujarat Electricity Board (Board) for the design, construction, supply execution, painting, testing and commissioning of the pretreatment plant and connected civil, mechanical, electrical and instrumentation plant work. The Memorandum of Understanding (M.O.U.) was signed at Mumbai. Pursuant to the M.O.U. bid was submitted to the