JUDGMENT :

Krishna Rao, J.

1. The Union of India through the General Manager, East Coast Railway, Bhubaneswar, Orissa has referred the instant application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as Act of 1996) against the award passed by the learned sole Arbitrator dated 12th day of March, 2008.

2. The petitioner had invited tender for earth-work in formation, construction of bridges and other allied works Inspection XXI at Sambalpur End from chainage 35900 to the chainage 39600 of Sambalpur-Telcher Rail Link Project. The respondent had participated in the said tender process and accordingly after negotiation, the respondent had accepted the said work order for a total sum of Rs. 28,83,531/-on 13th July, 1989 and completion period was 20 months with effect from 31st July, 1989 to 12th March, 1991. After acceptance of the offer, an agreement was entered between the parties. The respondent had completed about 77.08% of work and accordingly as per the bill raised by the respondent an amount of Rs. 22,22,602/-was paid to the respondent.