( 1 ) SALWAN Construction Company, the present petitioner, was awarded by respondent no. 1, the work for construction of M. S. O. building, at plot No. 35, Block D and D-1, at the estimated cost of Rs. 41,17,513. 00 , on the terms and conditions, as incorporated in the agreement No. 16/ee/cd-II/69-70.

( 2 ) UNDER the agreement, the work was to commence on January 21, 1970, and was to be completed within a period of 18 months, i. e. on or before July 20, 1970. It is not disputed that the work was completed on March 28,1974.

( 3 ) VARIOUS disputes arose between the parties, under the agreement, which provided for settlement by arbitration, under clause 25. Vide his letter dated December 24,1984, Chief Engineer, (CZ) C. P. W. D. , New Delhi, appointed Shri Sarvesh Chandra, as the sole arbitrator, to decide the disputes between the parties, as were referred to him. The arbitrator entered upon reference, on January 21, 1984.

( 4 ) PETITIONER and Union of India filed claims and counter claims respectively, before the arbitrator.

( 5 ) PETITIONER made the following claims :

CLAIM No. 1 : The Claimant claims a sum of Rs. 72, 285. 00 on account of alleged unjustified recovery For