1. This petition, under Section 34 of the Arbitration and Conciliation Act, 1996, has been filed by the petitioners to challenge the award dated 04.12.2008 passed by the learned arbitrator.

2. The parties to the litigatioin entered into a Memorandum of Understanding (MOU) on 05.03.2002. The object of the MOU was to permit the respondent to issue cover notes and the petitioner company was to issue regular insurance policies for one year operating from the date of issue of cover notes.

3. In order to implement the MOU, the respondent no.1 herein deposited a sum of Rs.8,00,000/- (Rupees Eight Lakhs only) to cover the premium for the policies to be issued by the petitioner. The respondent thereafter deposited further sums from time to time to cover premium payable to the insurance policies in the future. The petitioner deputed staff members at the office of the respondent finance company, to issue policies on the basis of cover notes. In December 2004, the petitioner company informed the respondent that account of respondent did not have sufficient cash to meet the premium with respect to 750 cover notes, issued by the respondent. The respondent was accordingly asked to depo