VALMIKI J. MEHTA, J.

1. By this first appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the Act’), the appellant/tenderer impugns the judgment of the court below dated 16.12.2006 by which the court below has allowed the objections filed by the respondent herein and set aside the Award dated 28.1.2005 of the sole Arbitrator which had directed refund of Rs.11,10,000/- being the bid guarantee amount and which was with the respondent/objector on account of encashment of the bank guarantee given as bid guarantee.

2. The facts of the case are that the respondent had invited tenders for the purpose of interior and other allied works at its office complex. Tenderers were required to furnish a bid guarantee of Rs.11,10,000/- and which was to remain valid for a period of 30 days beyond the validity period of the bid. Appellant submitted its bid on 19.9.2001 along with the earnest money deposit in the form of bank guarantee for a sum of Rs.11,10,000/-. Bids were opened on the same date i.e 19.9.2001 and the appellant was found to be the successful bidder. Thereafter, negotiations took place between the parties, inasmuch as, as per the bid documents pe