1. A.C. No.1/1996 is filed by M/s. Engineering Projects (India) Limited under Section 14 of the Arbitration Act, requesting this Court to make the award passed by the Arbitrator as Rule of this Court.

2. A.C.No.2/1996 is filed by the respondent in the aforesaid proceedings namely M/s. B.K. Constructions (BKC) under Section 30 read with Section 70 of the Arbitration Act, 1940 (hereinafter referred to as ‘the Act’) praying to set aside the award.

3. As the subject matter of both these cases are one and the same and the parties are also same, these appeals are taken up for consideration together and disposed of by this common order:

4. For the purpose of clarity, M/s. B.K. Constructions would be referred to hereinafter as the ‘applicant’ and M/s. Engineering Projects (India) Limited as ‘respondent’, as they were arrayed in the original proceedings.

5. Before we go into the merits of the claim, for proper appreciation, it is necessary to place on record the proceedings leading to the appointment of Arbitrator. The Life Insurance Corporation of India had entered into a contract with the respondent for construction of 144 houses in the Housing Colony. The respondent in turn,