1. Present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “Act, 1996”) for setting aside the arbitral Award dated 30th January, 2009 passed by the Sole Arbitrator, Mr. Justice C.L. Chaudhry (Retd.).

2. The only issue that arises for consideration in the present proceedings is whether levy of liquidated damages by petitioner-objector is to be on the total value of the Purchase Order inclusive of duties and taxes or whether duties or taxes have to be excluded. Learned Arbitrator in the impugned Award has rejected the petitioner-objector's argument for levy of liquidated damages on the Purchase Order inclusive of duties and taxes. The relevant portion of the impugned Award reads as under :-

“5 …………Clause 11 of P.O. is reproduced herein below for the sake of convenience:- Clause 11- “Liquidated Damages: should the firm fail to deliver the stores or any consignment thereof within the period prescribed for delivery, the purchaser shall be entitled to recover ½% of the value of the delayed supply for each week of delay or part thereof subject to maximum of 5% of the value of delayed supply (on basic valu