JUDGMENT :

SANJIV KHANNA, J.

This appeal by way of special leave by Batliboi Environmental Engineers Limited¹[For short, BEEL] takes exception to the judgment dated 02.11.2007, whereby the Division Bench of the High Court of Judicature at Bombay allowed the appeal²[Appeal No. 227 of 2001 in Arbitration Petition No. 280 of 1999.] filed by Hindustan Petroleum Corporation Limited³[For short, HPCL.] under Section 37 of the Arbitration and Conciliation Act, 1996⁴[For short, A&C Act.], and thereby has set aside the arbitral award dated 23.03.1999.

2. On acceptance of tender and in terms of the letter of intent dated 27.02.1992, HPCL had awarded to BEEL the turnkey contract for detailed engineering including civil and structural design, supply and erection, testing and commissioning of 23 MLD capacity Sewage Water Reclamation Plant in Mahul Refinery area. The contract value was Rs.574.35 lakhs. The contract period was 18 months from the date of letter of intent, and accordingly the work was to be completed by 28.08.1993. There was delay in completion. On written requests/applications mad