JUDGMENT

D.K. Jain, J. — Leave granted.

2. Challenge in this appeal, by the Food Corporation of India (for short “FCI”), is to the final judgment and order dated 14th October, 2005 passed by the Division Bench of the High Court of Judicature at Bombay, affirming the judgment of the learned Single Judge in Arbitration Petition No.334 of 2004. By the impugned order, the award of an amount of Rs.8,23,101/- by the sole arbitrator against claim No.9 has been upheld.

3. A brief factual background giving rise to the appeal is as follows:

The FCI undertook construction of godowns at Panvel, District Raigad and issued notice inviting tenders for construction of 50000 MT capacity conventional godowns in 10 units alongwith ancillary work and services. Pursuant thereto, the respondents (hereinafter referred to as the claimants) submitted tender, which was accepted by the FCI. A formal contract was executed between the FCI and the claimants on 19th September, 1984. As per the terms of the contract, the work was to be completed within 10 months from 30th day of issue of the orders and the time was deemed to be of the essence of the contract.

4. As the claimants could not complete the work within the