JUDGMENT

R.F. NARIMAN, J.

The present appeals relate to questions which arise qua the prereference and pendente lite interest under the Arbitration Act, 1940. The ONGC floated a notice inviting tender for the supply of 1200 Metric Tons (hereinafter referred to as "MT") of Sodium Carboxyl Methyl Cellulose (hereinafter referred to as "CMC"). Reliance Cellulose Products Ltd. (hereinafter referred to as "Reliance") submitted its tender quoting a price of Rs. 14,999/- per MT for quantities above 900 MT. It is not disputed that the offer of Reliance was accepted for the supply of 1200 MT of CMC, and accordingly, a supply order dated 01.12.1988 was placed on Reliance. Since Reliance agreed to supply 1200 MT only if the price is higher than Rs. 14,999/- per MT, the parties ultimately went to arbitration in order to decide what should be the contract price for supply of 1200 MT of CMC. A separate order, referred to as the repeat order, was also placed for supply of 600 MT of CMC. It is undisputed that the supply was made on time and payments were received for both contracts at the rate of Rs. 14,999/- per MT.

2. In October 1990, the petitioner filed a Special Civil Application before the Guj