JUDGMENT

Vibhu Bakhru, J. - Glitter Overseas (hereinafter 'Glitter'), a partnership firm and its constituent partners have filed the present petition under Section 34 of the Arbitration and Conciliation Act (hereinafter 'the A&C Act') impugning an arbitral award dated 08.01.2020 (hereafter 'the impugned award') rendered by an Arbitral Tribunal comprising of a learned Sole Arbitrator (hereinafter 'the Arbitral Tribunal').

FACTUAL BACKGROUND

2. On 17.01.1992, Glitter and the respondent (hereinafter 'MMTC') entered into a 'Hypothecation Agreement for Pre and Post Shipment Credit Advance' (hereinafter 'the Hypothecation Agreement'). In terms of the Hypothecation Agreement, MMTC agreed to grant Glitter financial assistance upto a limit of Rs. 25 lakhs, which was to be secured by goods or documents or title deeds. In terms of Clause 2 of the Hypothecation Agreement, Glitter agreed to pay interest at the rate of 15.5% per annum calculated on a daily balance basis. Further, in case of default in payment of the dues, Glitter also agreed to pay interest at the rate of 1% per annum over and above the interest rates applicable to cash credit facilities. In consideration of the Hypothecation Agree