JUDGMENT :

Lok Pal Singh, J.

This appeal, under Section 37 of the Arbitration and Conciliation Act, 1996, has been preferred against the majority Award dated 18.10.2007 passed by Sri S.K. Goyal and Sri G. Saran, Arbitrators in Arbitration Case No.04 of 2008 Oil & Natural Gas Corporation vs. M/s SIV Magcobar Lignins Ltd.

2. Facts leading to the present case are that the appellant invited tenders to supply of 551 MTs of chrome lingo Sulphonate. Respondent participated in the tender process and was declared successful. As per the agreement, the appellant placed a purchased order dated 3.4.2001 on the respondent for sale and supply of 551 MTs of chrome lingo Sulphonate. Supply was to be completed in 32 weeks by 14.11.2001. Respondent was asked to submit a bank guarantee of Rs.16,33,885/- in case of failure of contract. Out of 551 MTs, 276 MTs offered and supplied by the respondent was failed in the first test report dated 12.7.2001 as the same was not with the conformity with specifications mentioned in the purchase order. Appellant sent a letter dated 30.10.2001 to the respondent conveying that the supplier has option to get it tested on payment basis in line with clause 9, but the respo