SANJAY KISHAN KAUL, J.

1. The reference to the appellant herein is being made to M/s. Engineering Projects (India) Limited while to M/s. Arvind Construction Company Private Limited as the respondent as per the cause title in EFA (OS) No.4/2008. The appeals which have been taken up for consideration arise as both the parties are partly aggrieved by the impugned order.

2. The appellant undertook the construction of a building at Baghdad and entered into a contract with the respondent and sub-contracted part of the work. The disputes between the parties were referred to the sole arbitrator late Mr. Justice Prakash Narain (Retd.) in view of the existence of an arbitration clause who made and published an award dated 31.8.1990. The operative portion of the award reads as under:

“a)That the encashment by EPI of Bank Guarantee of Rs.38,25,000.00 submitted by ACCL, was not justified that EPI do pay back to ACCL this amount of Rs.38,25,000.00 and interest thereon @ 15% from 6.12.1986, the date of encashment of Bank Guarantee, upto 23,6,1988, the date of reference, amounting to Rs.8,84,500.00 (Rupees eight lacs eighty four thousand five hundred only).

b) That after taking into consideration

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