JUDGMENT

B. P. JEEVAN REDDY, J.:—Civil Appeal No. 3096 of 1981 arises from the judgment of a learned single Judge of Orissa High Court in Miscellaneous Appeal No. 253 of 1980. Civil Appeal No. 3097 of 1981 arises from Miscellaneous Appeal No. 254 of 1980. The appeals pertain to two identical contracts entered into between the State of Orissa and the respondent, Sri B. N. Agarwala. All the relevant facts and contentions are identical in both the appeals. It would, therefore, be sufficient if we refer to the facts in Civil Appeal No. 3096 of 1981.

2. An agreement No. 8-F2/67-68 was entered into between the State of Orissa (appellant) and the respondent for construction of Kukuteswar Minor Irrigation Project. The value of the agreement was Rs. 3,84,690/-. The work was completed on 11-9-69. On 8-8-77, the respondent claimed certain amount on account of extra work done by him, which dispute was referred to Sri B. N. Das, Superintending Engineer, as the sole Arbitrator. He made a reasoned award on 25-2-1980 granting a total sum of Rs. 1,59,298/-. This amount comprised of Rs. 61,086.61 p. towards interest and Rs. 98,212.09 p. towards the extra work done by the respondent. The interest amou