B.D. Agarwal, J.

1. This appeal under Section 37 of the Arbitration and Conciliation Act, 1996 ('Arbitration Act') has been filed by the Union of India praying for setting aside the award dated 21.12.2005 passed by the learned sole arbitrator in Arbitration Case No. MS 3 of 2002 and also the judgment and order dated 24.11.2006 passed by the learned Additional District Magistrate (Judicial), Aizawl in Arbitration Case No. 1 of 2006 upholding the award.

2. I have heard Mr. S.N. Meitei, learned central government counsel for the appellant. The sole respondent/contractor was represented by Mr. A.R. Malhotra, learned Counsel. I have also perused the impugned award, contract agreement and evidence of the parties.

3. The impugned award has been assailed basically on the ground that the same is in contravention of Section 28 of the Arbitration Act. It was also contended on behalf of the appellant that although there was no clause of price escalation the learned arbitrator has given the award in favour of the respondent due to misconceived and wrong interpretation of Clause 10(a) of the contract agreement. Learned CGC also submitted that the impugned award has been passed on the ground