M. Sundar, J.

1. This intra-court appeal arises out of an Arbitral Award passed by an Arbitral Tribunal and negativing a challenge to the Arbitral Award under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'A and C Act' for brevity) by a learned Single Judge of this Court.

2. Considering the nature and scope of this intra-court appeal arising out of a challenge to an Arbitral Award, it would suffice if a thumbnail sketch of facts necessary for understanding and appreciating this judgment is given. We give a thumbnail sketch of facts under the caption 'Factual Matrix' infra.

3. FACTUAL MATRIX:

3(a) Indian Oil Corporation Limited (hereinafter referred to as 'IOC' for brevity) is an entity wholly owned by the Government of India and is an instrumentality of State within the meaning of Article 12 of the Constitution of India ('COI' for brevity).

3(b) IOC embarked upon an exercise of appointing retail outlet dealers to women under a Special Scheme, which we are informed is intended to promote and encourage women entrepreneurs.

3(c) In the light of the aforesaid exercise of IOC, one Smt. S. Nirmala Sai made an application on 17.01.2004 to IOC for award of retail outlet dealership at a location which is described as Velacherry in Kancheepuram District in Tamil Nadu. After scrutiny of the application, IOC held an interview on 19.02.2004 and thereafter sent an offer letter dated 07.04.2004 to Smt.S.Nirmala Sai.

3(d) To be noted, in the instant case, Smt.S.Nirmala Sai had to arrange for a place where the intended retail outlet was to be set up. To be noted, in the instant case, Smt.S.Nirmala Sai owned the place. To be precise, the land owned by Smt.S.Nirmala Sai where the retail outlet was to be set up is land admeasuring 7200 square feet (3 grounds) or thereabouts in Velacherry Main Road at No.137, Velacherry village, Mambalam-Guindy Taluk, Chennai-600 042 and comprised in T.S.Nos.8/9, 8/10, 8/11, 8/12 and 8/13 (Old S.No.14/2), which is hereinafter referred to as 'demised land' for the sake of convenience.

3(e) A lease deed came to be executed between Smt.S.Nirmala Sai and IOC, wherein and whereby IOC took on lease the demised land for a period of 20 years. In other words, IOC became a lessee under Smt.S.Nirmala Sai qua the demised land for a period of 20 years. To be noted, the lease deed is dated 12.01.2005.

3(f) Thereafter, IOC entered into a dealership agreement dated 25.01.2005 Mrs. S.Nirmalai Sai, carrying on business in the name and style 'Bhagawan Balasai Enterprises' as its sole Proprietrix. Therefore, Smt.S.Nirmala Sai carrying on business in the name and style of 'Bhagawan Balasai Enterprises' as its sole proprietrix, shall hereinafter be referred to as 'dealer' for the sake of convenience and clarity.

3(g) In and by the aforesaid 25.01.2005 dealership agreement, IOC appointed the dealer as its authorised dealer for selling Petrol, High Speed Diesel and other lubricants as a retail outlet. To be noted, this dealership agreement was for a period of 15 years from 25.01.2005. In other words, the dealership agreement was from 25.1.2005 to 24.1.2020.

3(h) To encapsulate the arrangement between IOC and the dealer in one sentence, it can be said that IOC took on lease the demised land from the dealer for a period of 20 years and appointed the dealer as its authorised retail dealer to carry on the retail outlet in the demised land for Petrol, Diesel and other lubricants.

3(i) Retail outlet started functioning under the aforesaid arrangement.

3(j) Over a year and half later, a Multi Disciplinary Team of IOC carried out an inspection in the retail outlet of the dealer. The inspection was on 21.09.2006 to be precise.

3(k) It is averred that during the said inspection, petrol and diesel samples were taken from the retail outlet of the dealer and the same were sent to the Laboratory of IOC for testing. It is further averred that the test report showed that the petrol drawn from the retail outlet of the d