JUDGMENT :

N.V. RAMANA, J.

1. The present Civil Appeals, by way of Special Leave arise out of the impugned common judgment dated 09.04.2010 passed by the Division Bench of the High Court of Delhi, whereby the High Court dismissed the appeals filed by the present appellant against the dismissal of their objections to an award passed by the Arbitrator under the Arbitration Act, 1940.

2. A conspectus of the facts necessary for the disposal of the present appeal is as follows: the appellant had issued two tenders for the construction of certain quarters in which the respondent had participated. The first project related to the construction of 100 units of A and B type quarters. The second, was with respect to construction of 68 units of B, C and D type quarters. It appears that while the respondent was L-3 with respect to the first project, he was L-2 with respect to the second. After negotiations between both parties, the appellant decided to award both contracts to the respondent on the basis of an offer by the respondent of 16% rebate on the prices for completing the first project, in the event he was awarded both contracts. The two letters of award were issued on 29.06.1988 to the respondent. It appears from the record that there was some delay in the handing over of sites by the appellant, which resulted in a delay in the completion of the construction of quarters in both projects. Since there were disputes between the parties regarding the final payment due to the respondent-contractor, the respondent sought arbitration under the dispute resolution clause, and an Arbitrator was appointed.

3. The learned Arbitrator, vide awards dated 07.07.2000, granted relief to the respondent under different heads of the contract. With respect to the first contract pertaining to the construction of 100 units of A and B type quarters, the Arbitrator awarded a sum of Rs. 23,89,424/- with interest at 18% per annum pendente lite and 21% future interest to the respondent. With respect to the second contract pertaining to the construction of 68 units of B, C and D type quarters, the Arbitrator awarded Rs. 24,36,532/- at 18% per annum pendente lite and 21% future interest to the respondent.

4. Aggrieved by the above awards, the appellant filed objections against both the awards before the Delhi High Court under Sections 30 and 33 of the Arbitration Act, 1940. Vide separate orders dated 16.12.2009, the learned Single Judge of the Delhi High Court dismissed the objections of the appellant (except to the extent of modifying the interest rate granted by the Arbitrator) with cost of Rs. 50,000/- and made the award an order of the Court.

5. The appellant challenged the above orders in appeal before the Division Bench of the High Court under Section 39, Arbitration Act, 1940, which was dismissed vide the common impugned judgment dated 09.04.2010, with cost of Rs. 10,000/-.

6. Aggrieved by the same, the appellant has filed the present Civil Appeals by way of Special Leave against the impugned judgment.

7. Heard the learned counsel for the appellant and the respondent at length.

8. The learned counsel for the appellant confined his arguments to three main points the refund of the rebate agreed upon by the parties, the grant of escalation of charges for work done beyond the scheduled period and the costs imposed on the appellant by all three forums below. Although the first issue of the three arises only in Civil Appeal No. 6484 of 2014, as the latter two issues are common to both appeals, and the facts are connected, all the issues are being taken up together.

9. The learned counsel for the appellant submitted that the Arbitrator erred in holding that the rebate was a conditional one, as the terms of the offer by the respondent and the letter of award do not indicate the same. Further, the learned counsel also submitted that the Arbitrator erred in granting escalation of prices when the contract expressly indicated that the “quoted price shall remain firm during the