MANMOHAN SINGH, J.

1. The petitioner filed objections under Section 34 of the Arbitration and Conciliation Act, 1996 against the impugned award dated 31st August, 2012 published by the learned Arbitrator.

2. Brief facts of the case are that the petitioner entered into a contract agreement dated 31st July, 2006 to complete the work “Gauge conversion of Garhi Harsaru-Farukhnagar Branch Line, track circuiting of BG loop line of Delhi-Rewari Section and track works in connection with RRI of Delhi Sarai Rohilla, Patel Nagar and Delhi Cantt. on Northern Railways” with completion period which was to expire on 20th June, 2007. Performance guarantee of Rs. 34,33,889/- was furnished by the petitioner on 31st July, 2006.

3. When the above said works did not proceed for six months after the award of the contract, the respondent started writing letters to the petitioner about poor progress on which the petitioner assigned the responsibility for delay on the respondent. Subsequently, vide letter dated 26th December, 2006 the petitioner approached the respondent for reimbursement/ compensation of expenses alleged to have been incurred by the petitioner and loss of profit on proportiona