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4. CNPL states that the parties met during October/November 1999 when Mr. Baoni claimed to have been engaged in the business of technology development and research and made representations inter alia that he had designed, developed, proved and tested a proprietary set top box ('STB') which was Digital Video Broadcasting ('DVB') compliant and was ready for commercial exploitation. It is further stated by CNPL that Mr. Baoni demonstrated an STB by claiming inter alia that it was a proprietary STB developed and designed by him and that he had all the deliverables ready for commercial production of such STBs. It is stated that Mr. Baoni represented to CNPL that he was in the process of developing STBs for direct to home ('DTH') and terrestrial reception and dissemination of digital satellite signals. Mr. Baoni offered to transfer exclusive rights in the intellectual property and proprietary technology in STBs to a company to be promoted by Mr. Pradeep Jain of CNPL for commercial exploitation of the said technology or any other technology to be developed in future. Mr. Baoni stated that he needed to consult with one Mr. Baid, the other promoter and Director of Bisquare Consultants Pvt. Ltd. ('BCPL') so as to ensure smooth transition and stated that he required funds for that purpose as well.

4. Was the Set Top Boxes Technology supplied by Respondent No. 1 to the Claimant was in any way defective and not of DVB Compliant as well as commercially unviable?

5. Has there been any failure on the part of the Respondent No. 1 to transfer and deliver to the Claimant the Deliverables, Technology Information, Technical Support, Intellectual Property Rights, Technology for commercially viable DVB compliant Set Top Box in terms of the Technology Agreement?

"It is being dishonestly and falsely sought to be projected in the para under reply as well as the statement of claim, as if it was the res no. 2 who had personally given representations etc. regarding the STB Technology."

"It is respectfully submitted that the STB Technology was demonstrated by the respondent no.1 through a prototype Set Top Box developed by the respondent no. 1 based on Integra 1000 chip set from LSI Logic."

28. Learned counsel for the parties have extensively referred to the evidence on record. The reply statement filed by Bisquare and Mr. Baoni before the learned Arbitrator contained the admission that the STB technology demonstrated by Bisquare "was a prototype Set Top Box developed by Bisquare on Integra 1000 chipset developed by LSI logic." Mr. Sanjiv Kainth confirmed in his affidavit by way of evidence as under:

"20. In October/November 1999 when Mr. Ramendra S. Baoni gave a presentation as well as demonstration to the Claimant, I was also present with him. Mr. Ramendra S. Baoni demonstrated Manufacturing Kit MK 1000 given to them by LSI Logic and represented the same to be the design developed by him. Mr. Ramendra S. Baoni was hopeful of having an agreement with the Claimant and had planned that once the agreement was in place, Mr. Ramendra S. Baoni would require the Claimant to purchase the test equipment as well as RTOS (PSOS) compatible with Integra 1000 chip set and then the Respondents would be able to develop a set top box based on Integra 1000 chipset with its software development platform in due course of time using the test equipment and RTOS to be procured by the Claimant. This, however, could not take place till the time I was associated with the Claimant and the Respondents as the test equipment referred to above was not available with the Respondents. The Claimant had purchased PSOS and given to the Respondents based on the Respondents requirements."