( 1 ) THIS is a petition under Section 20 of the Arbitration Act. The petitioner is a construction company having its registered office at Hyderabad, Andhra Pradesh and administrative office at New Delhi. The respondent is a company having its head office at Calcutta. On 27. 5. 1993, the respondent published an notice inviting tenders for the construction of balance work of concrete gravity dam at Karvi-Langpi for 2 X 50 MW Lower Borpani Project Assam . The petitioner submitted its tender in the respondent s office at Calcutta accompanied by earnest money of Rs. 10. 00 lakhs by way of a Bank guarantee. Then commenced an exchange of letters between the parties seeking variations, negotiations and review of the terms and conditions of the contract. A final discussion was held on 31. 3. 1994 at Calcutta and the respondent agreed to issue a letter of intent for the construction of the concrete gravity dam and the associated works to the petitioner. Vide this letter of intent dated 6. 5. 1994, the respondent awarded the work to the petitioner.

( 2 ) ACCORDING to the petitioner a binding contract had come into existence between the parties on 6. 5. 94 with the issuanc