Soumen Sen, J.

This is an application for setting aside of an award under Section 34 of the Arbitration and Conciliation Act, 1996.

2. The respondent (IRCON International Ltd.) was awarded the contract by National Highway Authority of India (NHAI) for four laning and strengthening of the existing two lanes highway section from 115 KM. to 158 K.M. on the National Highway-2 in Uttar Pradesh.

3. The respondent entered into a contract with the petitioner for earth work, GSB, WMM and other civil works between 129 KM. to 145 KM. The original contract price was Rs.14,69,53,061/- and the same was subsequently reduced to Rs.10,76,96,821/-.

4. The petitioner as required under the contract had furnished three Bank Guarantees to the respondent as follows:-

i. Bank Guarantee dated 7th February, 2002 towards mobilization advance for Rs.73,47,654/-;

ii. Bank Guarantee dated 8th February, 2002 for Rs.4,77,598/- on account of interest towards the aforesaid mobilization advance;

iii. Bank Guarantee dated 28th December, 2001 for Rs.73,47,654/- towards performance guarantee;

5. The first two Bank Guarantees lapsed and so far as the third bank guarantee is concerned, by order of Court dated 17th Nove