( 1 ) THE appeal and the Civil Revision Petition arise from a common judgment and order of the learned Subordinate Judge, Rajahmundry, making the award a rule of the Court and dismissing the petition filed by the appellant-State for setting aside the award.

( 2 ) AN agreement was entered into between the State of Andhra Pradesh and the respondent-contractor for execution of the work of constructing approaches to the rail-cum-road bridge across Godavari, at Rajahmundry. The agreement is dated 17-6-1970, and the value of the work is Rs. 70,29,925/ -. A period of 42 months was stipulated for completing the work, i. e. on or before 21-12-1973, the respondent actually completed the work by 10-12-1974 after the period of contract was extended twice. The first letter of the contractor requesting for extension was addressed on 17-12-1973. Extension was granted up to 31-5-1974. By another letter dated 22-7-1974 the contractor requested another extension till the end of August, 1974. It was granted subject to imposition of penalty of Rs. 50/- per day, after 1-9-1974.

( 3 ) AFTER the work was completed, disputes arose between the parties with respect to the amount payable to