JUDGMENT

D. A. DESAI, J.:— In this appeal by special leave a very interesting question in the field of law of arbitration which honest men dread more than the dreaded law suits arises for our consideration.

2. First respondent Cochin Shipyard. Limited (respondent for short invited tenders for construction of Building Dock at Cochin. As there was only one tender that of Tarapore & Company, the appellant, the respondent called fresh tenders somewhere in July, 1971. In December, 1971, the respondent invited tenders for construction of a Repair Dock also at Cochin. There were two tenders for Building Dock, namely, one of the appellant and one by M/s. National Building Construction Corporation, a Government of India undertaking, the value of the tender of the latter being double that of the appellant. For the construction of the Repair Dock, the only tender was of the appellant. In view of the limited number of tenders received, the appellant was invited to negotiate the terms of tender. The value of the works to be executed was over Rs. 24 crores. In view of the huge investment in the project, the tenders were examined by a committee called the Tender Committee constituted in accordance