Vipin Sanghi, J.

1. By this appeal preferred under Section 37(2) of the Arbitration and Conciliation Act, 1996 (the Act), the appellant seeks the setting aside of the order dated 05.11.2009 passed by the arbitral tribunal whereby the arbitral tribunal allowed the application preferred by the respondent to intervene in the arbitral proceedings and also directed that the equipment and machinery detailed in para 7 of the application be released in favour of the respondent.

2. To understand the controversy before me, it is necessary to set out some of the facts. M/s You One Maharia (JV) (hereinafter referred to as `the JV') entered into a contract dated 23.05.2001 with the appellant NHAI. Under this contract, the JV was awarded the work of 4/6 laning and upgrading of the existing 2 lanes road in the State of Andhra Pradesh from Km.49 (Champavati River) to Km.97 (Srikakulam) Section of NH-5 of Kolkata-Chennai Corridor. The said contract, inter alia, contained the following clauses:

"54.1 All contractors equipments, temporary works and materials provided by the contractor at the site of works shall be of the capacity quality approved by the Engineer and shall be deemed to be exclusively intended for the execution of the Works. All these shall be operated/used and maintained in a manner acceptable to the Engineer. The contractor shall not remove the same or any part thereof, except for the purpose of moving it from one part of the site to another, without the consent of the Engineer. Provided that consent shall not be required for vehicles engaged in transporting any staff, labour Contractors equipments, Temporary Works, Plant and materials to or from the site.

63.1(4) The Employer may, after giving fourteen days' notice to the Contractor, enter upon the Site and expel the Contractor therefrom without thereby voiding the Contract, or releasing the Contractor from an of his obligations or liabilities under the Contract, or affecting the rights and powers conferred on the Employer or the Engineer by the Contract, and may himself complete the Works or may employ any other Contractor to complete the works. The employer or such other Contractor may use for such completion so much of the Contractor's Equipment, Plant, Temporary Works and materials which have been deemed to be reserved exclusively for the execution of the Works, under the provisions of the Contract, as he or they may think proper, and the Employer may, at any time, sell any of the said Contractor's Equipment, Temporary Works and unused Plant and materials and apply the proceeds of sale in or towards the satisfaction of any sums due or which may become due to him from the Contractor under the Contract."

3. The general conditions of contract were contained in Part 1, which stated that "The general conditions of contract comprise "Conditions of Contract for Works of Civil Engineering Construction - Part I, General Conditions, 4th edition, 1987 (Reprinted in 1988 with Editorial Amendments; Reprinted in 1992 with further amendments) published by the Federation Internationale Des Ingenieurs - Conseils (FIDIC), Lausanne, Switzerland." The conditions of contract for works of civil engineering construction of FIDIC i.e. Federation Internationale Des Ingenieurs - Conseils contained the general conditions in Part I. In the definition clause contained in clause 1.1, sub clause (f)(v) the term "Contractor's Equipment" is defined to mean "all appliances and things of whatsoever nature (other than Temporary Works) required for the execution and completion of the Works and the remedying of any defects therein, but does not include Plant, materials or other things intended to form or forming part of the Permanent Works."

4. During the working of the aforesaid contract between the appellant and the JV it was found that the various bank guarantees furnished by the JV were forged and fabricated. Consequently, the appellant terminated its contract with the JV and sought to exercise the rights conferr