Mool Chand Garg, J.

This appeal arises out of an order dated 16.05.2003 of the Learned ADJ whereby the Learned ADJ had set aside the award dated 18.08.2002 passed by the Arbitrator on the ground that the Arbitrator had failed to limit the award within the scope and jurisdiction of the reference to arbitration. Further by deciding that there was no validly concluded contract between the parties, the Arbitrator had gone beyond the scope of reference.

2. Briefly stated, appellants are the manufacturers of corrugated boxes used for the packaging of goods. The respondent Company M/s Modern Food Industries (India) Ltd. had invited tenders for the supply of corrugated boxes for packing their Nutro Biscuits. Appellant was one of the tenderer and his rates per box being the lowest, he became the successful tenderer. As the requisite formalities for the contract for supply would have taken some time to come into existence, a draft letter of acceptance was given to appellant by the respondent as a token of acceptance of the contract on 3.06.1999. Appellant too considering the fact that the conclusion of formal contract would take some time and supplies be made during the interregnum gave their quotation for the supply of corrugated boxes on 23.03.1999 itself at the same rate.

3. Pursuant to the quotation, the appellants were given a trial purchase order for the supply of 2000 corrugated boxes on 15.04.1999. The supply was to be made in five days. However, respondent by their letter dated 19.04.1999 unilaterally extended the said trial purchase order to 40,000 corrugated boxes instead of 2000 boxes. Subsequently on 26.04.1999 respondent issued another purchase order for the supply of 2,40,000 boxes. The date of issue of the purchase orders were prior to the date of draft letter of acceptance which was issued by the respondent on 3.06.1999. As per the said purchase orders the payment for supply was to be made within 30 days of the supply.

4. As such it is the case of the Appellant that the purchase orders were not a part of the contract/agreement for which the draft letter of Acceptance was sent by the respondent on 3.06.1999 and which was never signed by the appellant, In fact as per Appellant these were mere trial purchase orders.

5. The appellant had also furnished a bank guarantee of Rs 1.85 lacs which according to appellant had no connection with the two purchase orders placed on 15.04.1999 and 26.04.1999 rather it was against the contract which never came into existence as the draft letter of acceptance dated 3.06.1999 sent by the respondent was never signed by the appellant. However, respondent made various deductions from the bills raised by the appellant and also encashed a part of the Bank Guarantee provided by the appellant on the pretext of the alleged extra expense incurred by the respondent on the purchase made from the market amounting to Rs. 2,76,660/- as appellant had not supplied the boxes in full.

6. Aggrieved by the deductions made by the respondent, the appellant on 27.04.2000 requested for the appointment of the Arbitrator under Clause 20 of the tender dated 23.03.1999 wherein the arbitration clause is coached in very wide terms and interalia reads that " all disputes and differences (other than the technical specifications) arising out of, or in any way touching or concerning the said contract shall be referred to the sole arbitrator of the Senior General Manager of the Modern Road Industries(India) Ltd". The learned Arbitrator passed an award dated 18.08.2002 in favour of the appellant against which the respondent filed objections u/s 34 of the Arbitration and Conciliation Act, 1996 before the learned ADJ and the Learned ADJ after hearing the parties vide impugned order dated 16.05.2003 set aside the award of the Arbitrator which is the subject matter of appeal before us.

7. It was submitted by the appellant that no valid contract envisaged by the tender dated 23.03.1999 came into existence at any point of time a