The Petitioners, a Government of Maharashtra undertaking, have challenged the award dated 29 February 2008 passed by the Sole Arbitrator, as appointed on the basis of Arbitration clause in the agreement in question between the parties.

2. On or about December 2001, the Petitioners invited tender for Four Laning of Satara Kolhapur upto Maharashtra State Border Section of NH4 Package III from km. 639/000 to 668/000. The Petitioners awarded the work to the Respondents and issued a letter of acceptance. A formal contract was entered into between the parties. On 3 May 2002, a notice to proceed with the work was issued to the Respondents, which work was to be completed by 2 August 2004. On 1 June 2005, the work was completed by the Respondents.

3. Certain disputes arose between the parties in respect of the contract with regard to reimbursement of increase in royalty charges under the provisions of Clause 14 of the Special Conditions of Contract mentioned hereinabove and Price Escalation in respect of 32 mm MS Dowel Bars used in Pavement Quality Concrete (for short, PQC).

4. On 6 April 2006, the Respondents gave a notice under Clause 67.2 of the contract calling upon the Petiti