( 1 ) THE petitioner State Trading Corporation of India Limited (for short "stc") has filed objections under Sections 30 and 33 of the Arbitration Act, 1940 challenging the legality and correctness of the award dated 3. 7. 1990, in so far as it has disallowed its claims, passed bythree arbitrators, namely, Mr. Justice P. N. Bhagwati (Retd. Chief Justice of Supreme Court of India), Chairman, Mr. Justice V. S. Deshpande (Retd. Chief Justice of Delhi High Court) and Mr. A. J. Sear, Arbitrators.

( 2 ) BRIEFLY, the facts are that the respondent by its telex dated 27. 2. 1987 made an offer to the petitioner to sell 20,000 MT of crude de-gummed soya bean oil for shipment in April 1987 at a price of US $ 328. 00 per MT CIF one port, Bombay or Kandia. The soya bean oil offered was from USA, Canada, Brazil, Argentine or West Europe including Spain and Portugal. This Offer-included 25% counter trade commitment. After telephonic discussions, the price was agreed to be US $314 per MT and the counter trade commitment was enhanced to 30% of the CIF value of the soya bean oil agreed to be purchased (amounting to US $ 1,884,000. 00 ). Terms and conditions as per STC-5 as amended upto