1. By this petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short “the said Arbitration Act), the petitioner has impugned the arbitral award dated 1st July 2008 allowing some of the claims made by the respondent. Some of the relevant facts for the purpose of deciding this petition are as under :

2. The petitioner was the original respondent in the arbitral proceedings whereas the respondent was the original claimant.

3. On 15th July 1997, the petitioner awarded a contract to the respondent for design/supply and erection of OHE in Koparkhairane -Turbhe-Vashi-Nerul vide letter of acceptance dated 15th July 1997 at a total cost of Rs.2,32,28,205/- inclusive of all taxes, duties and incidental charges. It is not in dispute that the original contractual period was of 18 months i.e. upto 14th January 1999.

4. Due to various reasons, the work could not be completed within the original stipulated period of 18 months i.e. on or before 14th January 1999. The work was treated as completed in the month of August 2004.

5. It is not in dispute that the respondent vide various letters applied for extension of contractual period from time to time to the pe