1. The respondent has entered appearance in the stage of admission itself.

2. As the matter involves a pure question of law regarding the scope of authority conferred on the Court under Section 34 of the Arbitration and Conciliation Act, 1996, the appeal can be disposed of at the stage of admission itself. Hence, the learned counsel for the appellant and the learned Special Government Pleader appearing for the respondent have been asked to make their submissions on the above said question and accordingly, they have made their submissions.

3. Pursuant to a dispute regarding the settlement of bills between the appellant and the respondent, as per the arbitration clause in the contract, the matter was referred for arbitration and the arbitrator passed an award on 03.06.2006 holding the respondent herein liable to pay a sum of Rs.2,01,35,803/- together with an interest at the rate of 18% p.a. Aggrieved by the said award, the respondent herein filed an application under Section 34 of the Arbitration and conciliation Act before the learned Principal District Judge, Cuddalore in Arbitration O.P.No.93 of 2006 to set aside the arbitral award.

4. The learned Principal District Ju