I.A. Ansari, J.

A challenge has been made by this appeal against the order, dated 18.11.2004, passed by the learned Deputy Commissioner, Papumpare District, Arunachal Pradesh, in Misc. Arbitration (Appeal) No. 1/2003, whereby the award has been set aside by invoking the provisions of Section 34 of the Arbitration and Conciliation Act, 1996.

The material facts, which gave rise to the present appeal, may, in brief, be set out as follows:

2. FACTS LEADING TO ARBITRATION:

(i) A Notice Inviting Quotation, dated 18.8.1993, was issued by the Chief Engineer, Department of Power, Government of Arunachal Pradesh, for supply of 30 Hydel Power Generating Sets (in short, hydel sets) of 20KW, 30KW and 50KW capacity meant for supply of electricity to remote areas of Arunachal Pradesh. The hydel sets, to be so procured by the Government, were to be utilized with the help of natural water sources and springs for production of electricity. The appellant herein submitted its proposal, on 29.9.1993, to the Chief Engineer (Power) for supply of the 30 hydel sets. This offer of the appellant had three distinct features, namely, (i) prices F.O.R. Itanagar, (ii) 75% on the strength of indemnity bond/un