Vipin Sanghi, J. (Oral)

1. The petitioner, MCD has filed this petition under section 34 of the Arbitration and Conciliation Act to assail the arbitral award dated 16.06.2009 passed by Shri Prem Kumar, the learned arbitrator, whereby he has allowed claims No. 1 (for refund of earnest money), claim No. 2 (for compensation of account of loss of profit due to breach of contract), claim No. 4 (towards interest), and claim No. 6 (towards the arbitration costs), amounting to Rs. 34,24,384/-. The learned arbitrator has also awarded the amount of stamp duty, i.e. Rs. 3424/-. He has further granted interest on Rs. 34,27,808/- @ 9% p.a. from the date of the award till realization.

2. The respondent/contractor was awarded the work for construction of pucca school building of MC primary school at New Ashok Nagar, in AC-37/67 in Shahdara South, Delhi vide letter dated 11.03.2004. While the estimated cost put to tender was Rs. 2,49,14,000/-, the amount tendered by the respondent contractor, and accepted by the petitioner was Rs. 2,25,92,552/-. The respondent was called upon to start the work at once. It was stated that the time allowed to carry out the work shall be reckoned from tenth day of issue