1. The First Applicant is a Spanish Company operating in the infrastructure sector and operates in India through its subsidiary, the Second Applicant, which is a Joint Venture Company. The Second Applicant is a wholly owned subsidiary of the First Applicant and is a Company incorporated in India and is a contractor to the Second Respondent. The Third Applicant is a Partnership firm of the First Applicant and it is also a contractor to the Second Respondent. The First Respondent is a Joint Venture partner of the Applicants and is also a shareholder in the Second Respondent. The Second Respondent is the Joint Venture Company of the First Applicant and the First Respondent and the Third Respondent issued Bank Guarantees in favour of the Second Respondent at the request of the First Applicant.

2. The brief facts of the case are as follows:

(a) In November 2004, the Chennai Metropolitan Water Supply and Sewerage Board (“CMWSSB”) invited proposals from contractors wishing to participate in the tender for a project to design, construct, operate and maintain a Desalination Plant to be built at Minjur, Chennai on a design, build, own, operate and transfer basis. The First Applicant