( 1 ) THIS petition under Section 11 of the Arbitration and Conciliation Act,1996 was filed by petitioner company alleging that it is engaged in the business of manufacturing and trading of Technical grade pesticides and their intermediates. In pursuance of Tender Notice No. HIL/co/1/96 dated 1/2/1996 issued by the respondent in local daily newspapers for purchase of Fenvalerate Technical and cypermethrin Technical, the petitioner submitted its quotations/ offers alongwith earnest money deposits etc with the respondent vide letter Nos. BRL : 96:4538 and 39, both dated 20/2/1996. Tenders were opened on 23/2/1996 and petitioner company was declared successful tenderer. Respondent thereafter entered into negotiations with petitioner. Petitioner company gave its revised offers vide letter Nos. BRL : 96 : 4823 and 24, both dated 21/3/1996. After further negotiations, petitioner vide its letter dated 12/4/1996 offered to extend interest free credit for 70 days instead of 30 days with respect to cypermethrin Technical only. Petitioner also offered to respondent a special rebate of 2% on basic price of the supplies of Cypermethrin Technical only if payment was made by it within