1. This petition under Section 34 of the Arbitration & Conciliation Act, 1996 (“Act”) is directed against an Award dated 22nd October, 2012 passed by the Sole Arbitrator in the disputes between the parties.

2. The facts are that the Respondent Engineers India Limited (“EIL”) had placed on the Petitioner TEMA India Limited (“TEMA”), a Purchase Order (PO) dated 27th February, 2008 for supply of 9 Heat Exchangers – High Pressure (Screw Plug/Breach Lock) on FOT Dispatch Point Basis for consideration of Rs. 29,92,50,000/-. EIL was procuring the said equipments for Chennai Petroleum Corporation Limited (CPCL). The delivery period was 17 months from the date of the PO and delivery was expected to be completed on or before 26th July, 2009. There was in the PO a clause for Price Reduction Schedule (PRS) for delay in delivery'. It was stated that the PRS shall be applicable at 1% of the total order value per week of delivery or part thereof subject to a maximum 10% of the total value.

3. The PO itself stated that in addition to the terms and conditions mentioned in the PO, "the General Purchase Conditions (GPC) and other Commercial Terms & Conditions as sent with the RFQ and Amendment the