( 1 ) THE foremost question in issue in this case is whether or not Section 3 of the Foreign Awards (Recognition and Enforcement) Act, 1961 (for short fare Act ) is applicable to the arbitration agreement contained in the underlying contract executed by and between Gas Authority of India (for short gail ) on the one hand and SPIE CAPAG,s. A" NKK Corporation and Toyo Engineering Corporation (for short consor- tium ) on the other. The second question which arises is: If Section 3 of the FARE Act is applicable then whether or not proceedings before the International Court of Arbitration of the International Chamber of Commerce (respondent No. 4), intitated by the Consor- tium for appointment of three member Arbitral Tribunal for adjudication of the claims raised by it against GAIL, should be permitted to continue.

( 2 ) THE facts of the case may be stated as under: GAIL is a company incorporated under the Companies Act,1950havingits registered office at Hotel Samrat,chanakyapuri, New Delhi. GAIL floated world wide tenders for execution of Welled Steel Gas Pipe Line Project for transportation of sweetened South Bassein Gas from Hazira in the State of Gujarat to J