JUDGMENT :

I. Mahanty, J.

1. Instant misc. appeal has been filed by the appellants-Department against the judgment dated 04.05.2011 passed by the learned Additional District Judge No. 1, Bharatpur in Civil Misc. Case No. 01/2008, whereby the objections filed by the appellants under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, 'the Act') were dismissed.

2. The facts, in brief, are that the Superintending Engineer, Irrigation Circle, Bharatpur issued NIT in 2003 for rehabilitation work of three numbers main canal and Mandapura Minor of Bund Baretha under the Rajasthan Water Sector Restructuring Project. Pursuant to said NIT, the respondent No. 1, claimant, submitted its tender, which was accepted by the appellant and an agreement No. 1/2003-04 was executed between the appellant No. 2 and the respondent No. 1-contractor for the said work. The total cost of the work was Rs.2,38,88,604/-. As per the terms of the agreement, the work was to be completed within 24 months from the date of placement of order. The date of commencement of work was fixed as 10.04.2003 and completion of work as 09.04.2005. However, the stipulated period was extended till 09.07.2005. The resp