R. V. RAVEENDRAN, J.

( 1 ) THE appellant, respondents 1 and 2 were respectively petitioner and respondents 1 and 2 in Arbitration Case No. 42 of 1998, on the file of city Civil Court, Bangalore. For convenience the appellant will also be referred to as the 'employer' or 'rites'; the first respondent will also be referred to as the Contractor; and the second respondent will also be referred to as the Arbitrator.

( 2 ) RITES invited tenders by tender notice dated 1-12-1993 for construction of "daily market building (civil works)" at Chintamani. The contractor submitted its tender. The employer (RITES) accepted the said tender and awarded the work to the Contractor, as per letter of acceptance dated 14-2-1994. In that behalf, an agreement dated 18-3- 1994 was entered into between RITES and the Contractor for the execution of said work the contract value being Rs. 1,03,18,371. 00. The tender notice, letter of acceptance and the agreement made it clear that RITES was acting on behalf of the Town Municipal Council (TMC), Chintamani. As per the contract, the contractor had to execute the work within 15 months from the date of letter of acceptance, that is on or before 14-5- 1995. In consi

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