1. The petitioner has preferred this appeal challenging the dismissal of arbitration petition by the learned Single Judge of this Court, whereby the petitioner had challenged the award passed by the learned Arbitrator granting compensation on different head to the respondent no.1 (hereinafter referred to as the ’Contractor’).

2. Admitted facts are that, the petitioner had invited tenders for construction of sewage water reclamation plant at the petitioner’s refinery at Mahul, Mumbai by tender enquiry dated 20th March, 1991. Tender submitted by the contractor was accepted as per the letter of intent dated 27/2/1992. Parties entered into an agreement for execution of the said contract. Under the agreed terms, the contract value was Rs.5,74,25,000/-. The work was to be completed within 18 months from the letter of intent. Admittedly, within the specified period of 18 months, work was not fully executed and on request made by the contractor, time was extended twice. Work was carried on until 31st March, 1996 and thereafter, the contractor abandoned the work. Admittedly, by that time 80% work was completed and only 20% work had remained uncompleted. On 4-7-