Judgment

S.B. Majmudar, J.-Leave granted.

2. These appeals by special leave are preferred by the State of Andhra Pradesh being aggrieved by a common judgment and order dated 08.04.1996 of the High Court of Andhra Pradesh in appeal against order of the Trial Court as well as in companion civil revision petition arising out of the very same judgment of the Trial Court. The question in controversy between the parties in these appeals which were finally heard by consent of learned counsel for the parties is to the follow­ing effect :-

Whether the award of the arbitrator to the tune of Rs. 38,32,697/- with 18% interest per annum from the date of reference i.e. 27.06.1985 till payment in favour of Respondent No. 1 which was made rule of the court, was legally justified or not.

3. A few relevant facts leading to these appeals deserve to be noted at the outset. Respondent No. 1-Contractor had executed a works contract assigned to him for laying distribution pipe lines to 32 fluoride affected villages in Prakasam District of An­dhra Pradesh. As per the said agreement dated 30.07.1980 executed by the Executive Engineer on behalf of the appellant-State granting the said contract to Re­spondent No