( 1 ) THIS petition under Section 34 and Section 16 of the arbitration and Conciliation Act, 1996 (hereinafter called "the Act" only) is directed against an Award dated 29. 11. 2002 passed by the named Arbitrator in favour of the claimant-respondent No. 1. By the said Award, the learned arbitrator held that the respondent No. 1 is entitled to recover a sum of Rs. 10,92,990/- from the petitioner along with interest in the sum of Rs. 27,28,450/- up to 28. 11. 2002 @ 3% per month with monthly rest from 12. 4. 1999. Future interest also was awarded from the date of the Award till the date of payment @ 3% per month.

( 2 ) THE facts relevant for the disposal of the objection petition, briefly stated, are that on 27. 3. 1998 the petitioner had taken an Inter-Corporate deposit of Rs. 1 crore from respondent No. 1 on interest @ 21. 5% per annum. This loan was for a period of 90 days. The agreement provided that so long the loan amount remained unpaid after the due date of payment the petitioner would be liable to pay penal interest @ 3% per month. The agreement contained an arbitration clause also. On 25. 6. 1998 in pursuance of the agreement, the petitioner issued a cheque