( 1 ) THE petitioner has filed the present petition under Section 8 of the Arbitration and Conciliation Act, 1996 against the respondents for appointment of an Arbitrator as disputes have arisen between (he parties in connection with contract No. 58380/dgos/os-P-II/proc. Sec/605 dated 11th November, 1997 for supply of 15,19,100 numbers of towel hand bleach of a particular size at the rate of Rs. 31. 00 per towel to the four consignees indicated by the respondents in the contract. The time, being the essence of the contract, the petitioner in order to execute me contract and supply the towels in the stipulated time started the manufacturing process and in the first phase manufactured three lakhs of towels and arranged the raw material for the balance quantity. Three lakh towels were sent to three consignees named in the contract but they refused to accept the same. In the process the petitioner had suffered huge losses on account of the breach of the contract on the part of the respondents. The petitioner issued a notice dated 22nd May, 1998 bringing the entire facts to the notice of the respondents but the respondents kept silent. This led to subsequent notices and le