S. RAVINDRA BHAT, J.

1. The present appeal, under Section 37 of the Arbitration and Conciliation Act (hereafter “the Act”) is directed against the judgment and order of a learned Single Judge, dated 17.02.2010 in OMP 40/2000. The impugned judgment dismissed the objections of the appellant (hereafter “MMTC”) to the majority award of a three member Arbitral tribunal (hereafter “the Tribunal”) dated 23.08.1999. The award had directed payments to the claimant/respondent (hereafter “Belcom”) by MMTC.

2. The facts relevant for this case are that on 14.10.1991, Contract No.35 was executed between MMTC and Belcom for sale of 50,000 metric tonnes of Muriate of Potash (MOP) at a price of ` 2,766.50 per metric ton. This was an F.O.B. contract.. The said contract contained a payment clause by which MMTC was to open a Letter of Credit with the Bank for Foreign Trade of USSR, Minsk – Bank of Foreign Economic Affairs [hereafter “BFEA”], valid for a period of 90 days. The relevant portion of the payment clause is reproduced herein below:

“PAYMENT :-

Within 7 days after receiving the sellers' telegraphic advice of the readiness of the goods for shipment, the buyers shall open by cable with the Bank for Foreign Trade of the USSR, Minsk, in favour of the sellers an irrevocable Letter of Credit in Indian Rupees for the 80.5% value of the goods mentioned in the sellers' cable plus 5% to cover possible increase of the quantity of the shipment. The Letter of Credit shall be opened for validity of 90 days. Payment of the goods shall be made in Indian Rupees through the aforesaid Letter of Credit against presentation to the Bank for Foreign Trade of the USSR, Minsk of the under mentioned documents.

It is agreed that for the shipment of 50,000 i.e. 5%, 95% less franchise of 0.5% of the invoice value will be payable. Balance will be payable after discharge port results are found in conformity with the contractual specifications etc. In case of variations, penalty imposed by the Ministry of Chemical & Fert. Govt. of India would be adjusted from the amount due to the Sellers.

i) Copy of Tlx advice from sellers to Buyers immediately upon sailing of the vessel giving name of the vessel, date of sailing, quantity loaded and invoice value.

ii ) Full set of ?clean on board Bill of Lading in long form (one original and 3 copies) showing the Ministry of Chemical & Fertilizer (Deptt. of Fert.) as Consignee- marked freight payable by the Charterers Hotify-Ministry of Chemicals & Fertilizers (Deptt. of Fert.) Charter party bills of lading acceptable provided it bears an endorsement that all terms and conditions of the relevant Charter Party are deemed to have been incorporated therein.

iii) Invoice in four copies in the name of the IDITC on behalf of ministry of C & Fert. (Deptt. of Fert.)

iv) Certificate of weight issued by the port authority, otherwise Bill of Lading will serve as weight certificate.

v) Certificate of Quality issued by the Sellers/Producer.

vi) Certificate of Origin in four copies.

vii) Sellers' Certificate showing 2 original Bill of Lading.............”

3. On 24th October, 1991, MMTC, the purchaser opened a Letter of Credit for 25,000 metric tonnes, valid for 90 days, i.e. valid till 22nd January, 1992. On 15/16.12.1991, documents were presented to the MMTC’s banker, the Oriental Bank of Commerce [hereafter “OBC”], which then was obliged in terms of the LOC to make payment in accordance with its terms and in accordance with international banking practise and customs. However, Belcom, fearing disintegration of the USSR, wrote to MMTC on 18.12.1991 directing them to not release payment for the shipment of MOP by vessel “Indian Renown”. On this basis, MMTC by its letter dated 20.12.1991 instructed its banker OBC, to not pay under the said LOC.

4. As the former USSR disintegrated on 31st December, 1991, petitioner-objector/buyer and the respondent-claimant/seller agreed to amend the payment clause in the contract as under:

“MMTC is also ag