This is an application by PWH Analgen & Systeme GMBH and Ors. (referred to as PWH) to stay a suit filed by Damodar Ropeways &. Construction Company Pvt. Ltd. (referred to as Damodar). The application has been filed under section 3 of the Foreign Awards (Recognition and Enforcement) Act, 1961( referred to as the 1961 Act).

2. The suit which is sought to be stayed was instituted by Damodar against PWH, the United Bank of India, Berliner Bank and Buckau Wolf India Ltd. The case of Damodar briefly stated is that it had entered into an agreement with PWH (referred to as the Consortium Agreement) by which it was inter alia agreed that Damodar would, as a partner of PWH, supply goods to fulfill a contract between PWH and a Japanese Company, Hazama-Gumi Ltd. Hazama had entered into a contract with PWH to set up a ropeway at Udaipur in Nepal.

PWH was to provide guarantees in favour of Hazama relating to its contract with Hazama. In the consortium agreement Hazama has been referred to as the customer. Under the consortium agreement specified portions of the work awarded by Hazama to PWH was divided between Damador and PWH. The liability of• the parties to the consortium agreement was