Anil K.Narendran, J.

The appellant is respondent in O.P.(Arb.)No.51 of 2005 on the file of the First Additional District Court, Ernakulam, an Original Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') seeking an order to set aside the award passed by the Arbitrator dated 23.11.2004. The Court below by order dated 31.1.2006 allowed the Original Petition, setting aside the award passed by the Arbitrator. Aggrieved by the said order, the appellant is before this Court in this appeal, under section 37(1)(b) of the Act.

2. We heard the arguments of the learned counsel for the appellant and also the learned counsel appearing for the respondent.

3. The appellant, the claimant before the Arbitrator and respondent before the court below, floated global tenders on 18.10.1999 for the work of Effluent Treatment Plants I and III. The respondent herein, the petitioner before the court below and respondent before the Arbitrator, submitted the tender on 3.12.99. There were three tenderers including the respondent. Highest bid was for 1,08,00,000/-; the second bid was for 75,30,000/-; and the third bid by the respondent was f