Manmohan Singh, J.

1. The petitioner has preferred the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the ‘Act’) challenging the arbitral award dated 21st March, 2012.

2. Brief facts are that:-

(i) The petitioner (NHAI) entered into a contract agreement with the respondent, Progressive Constructions Ltd., for the work of four laning of Km. 410.000 to Km. 419.000, and Km. 470.000 to Km. 476.150 of Purnea-Gayakota Section of the National Highway (Package EW-4), in the State of Bihar on 12th August, 1999.

(ii) During the course of execution of the work, due to certain site conditions and the decision to construct an additional 4 Km. of service road, the quantities of some items of the BOQ increased substantially compared to the original provision in the BOQ. The Engineer, by four separate letters dated 26th March, 2003 issued Variation Orders (‘VOs’) for changes in the quantities of items 3.01, 3.02, 3.03 and 4.04 of the BOQ. The rate for quantities of these items which amounted to 1% of the contract price was kept the same as was quoted by the contractor while tendering. It was also stated by the Engineer that the