S. Muralidhar, J.

1. Gas Authority of India Ltd. (‘GAIL’) has filed this petition under Section 34 of the Arbitration and Conciliation Act, 1996 (‘Act’) challenging an Award dated 26th April 2002 passed by the sole Arbitrator (Respondent No. 2) in the disputes between the GAIL and Respondent No. 1 SAB Industries Ltd. (‘SIL’) arising out of a letter of intent (‘LoI’) dated 23rd December 1996 whereunder SIL was to construct hundred houses for the GAIL at Sector 23, Noida for a total value of Rs. 5,37,83,775.

2. Before the sole Arbitrator appointed by the GAIL, SIL filed twenty-eight items of claims in the sum of Rs. 1,97,52,143.62 together with future interest at 24% per annum compounded quarterly on the amounts claimed under Claim Nos. 1 to 28.

3. In its reply statement filed on 14th August 2001 a preliminary objection was raised by GAIL that since SIL had accepted the payment of the amount under the final bill in absolute satisfaction no further claim was maintainable. Along with the reply statement, GAIL enclosed a copy of the completion certificate, 18th RA bill as finalized and the no demand certificate (‘NDC’) issued by SIL. In other words, GAIL’s plea was that since the