JUDGMENT

R.V. Raveendran, J.—

Delay condoned as appellants were pursuing the remedy by way of writ petition till 14.12.2005. Leave granted.

FACTS (M.K. ABRAHAM & CO.)

2. A section of the work relating to NH-49 was awarded to the appellant under letter of acceptance dated 1.12.1999 issued by the second respondent [Project Director (SE), National Highway (ADB), Circle Edappally, Cochin]. A formal contract agreement was executed by them on the same day. By letter dated 9.10.2001, the appellant-contractor called upon the Executive Engineer, National Highways (Roads) Division to pay certain amounts as compensation for the losses caused on various accounts. The Executive Engineer denied the claim by a reply sent in December, 2001 contending that there was a full and final settlement of the claims by paying the amounts due under the final bill. Being dissatisfied with the said rejection, the appellant by notice dated 1.4.2002 called upon the Executive Engineer to refer the disputes in regard to its claims aggregating to Rs.42,26,432/58 to arbitration. As there was no response, the appellant by letter dated 26.8.2002 nominated his arbitrator and called upon the second respondent to nominate