I.P. MUKERJI, J.

BACKGROUND

This is an application challenging an award made on 31st January, 2005 by a retired Judge of this court. The learned Arbitrator was appointed by the Chief Justice of this Court on 6th December, 2001 to adjudicate the disputes between the parties arising out of their contract dated 20th January, 1995. As many as 70 sittings were held. Pleadings were filed. Documents were disclosed and produced. There was examination and cross-examination of witnesses. Thereafter, the award was made and published. Union of India is aggrieved by this award.

The contract between the parties was that the respondent was to construct two types of residential quarters. One type was described as Type I. Sixty four of them had to be constructed. The other was described as Type III. Eight of them had to be constructed. The total amount payable under the contract was Rs.1,81,33,584/-. Work was done to the extent that Rs.1,77,84,140/- could be claimed. Such amount was claimed by the Respondent Contractor and paid by the petitioner. The percentage of the total consideration or value of work which was not done was only 1.98%. According to the contract the work was to be com