( 1 ) IN this petition filed on January 16,1998 under Section 9 (ii) of the Arbitration and Conciliation Act, 1996 (for short act ), it is inter-alia alleged that the petitioner moved A. A. NO. 42/96 under Sections 8 and 11 of the Act. By the order dated October 17,1996 said petition was disposed of and the arbitrators by both the parties were duly appointed. Arbitrators,namely, Justice R. P. Bhat (Retd.) nominee of the petitioner and Sh. V. Kumar, nominee of the respondent in turn appointed and Justice Avadh Behari Rohtagi (Retd.) as the presiding arbitrator. The arbitrators have made the award dated December 31,1997 and have awarded to the petitioner US$ 88,250 together with interest @ 9% p. a. from December 27,1995. Financial interest of the petitioner for that amount needs to be protected. It is prayed that respondent be directed to furnish security for US$ 88,250. 00 plus interest @ 9 % p. a. in terms of the arbitral award dated December 31,1997

( 2 ) IT the reply it is, inter-alia, alleged that the arbitrators after having reached the conclusion that no valid contract was concluded between the parties, ought not have exercised jurisdiction in awarding US$ 88,2