JUDGMENT

A.K. Sikri, J. By means of this petitioner filed under Section 34 of the Arbitration and Conciliation Act, 1996 Union of India has challenged the arbitral award dated 27.6.2003 passed in favour of respondent. The petitioner had awarded contract GP-183 to the respondent herein for supply of 10,000 Nos. 22.9 T BG Box'N' wheel sets on 29.8.1996. This quantity was subsequent reduced to 5297 and the respondent shipped the material in 3 lost different dates. According to the petitioner the supplies were made after the stipulated date of delivery. On the request of respondent, delivery period was extended with token Liquidated Damaged (LD) with denial clause for the Ist and the 2nd lots. For the balance 3000 Nos., scheduled delivery period was extended with LD and denial clause to cover foreign exchange and custom duty variation, etc., limiting the total damages to 10% value of the stores besides expenditure on LC extension. The respondent requested for refund of LD levied at 10% and when this request of the respondent was regretted by the petitioner the respondent herein invoked the arbitration vide letter dated 24.5.2000. In terms of the arbitration clause the respondent nomin