JUDGMENT :

M A CHOWDHARY, J.

1. Applicant-M/S National Engineers, through the medium of this Arbitration Application under Section 34 of the J&K Arbitration & Conciliation Act, seeks setting aside of award dated 10.08.2005 and communication dated 04.10.2005 on an application moved U/S 33 of the Act, passed by the learned Sole Arbitrator Col. Balwinder Singh, in Arbitration Application titled “National Engineers Vs. Commander Works Engineers, HQ 138 Works Engineeers.” to the extent of non-payment of interest as the petitioner is entitled to recover interest @ 24 % per annum from the date of completion of contract agreement.

2. The facts in brief as narrated in the petition are that:

The petitioner-firm was allotted work vide Contract No.CWE/JP-06/9569 for providing external water lubricant pumps as long term water supply at Nagrota and a contract agreement was made in this regard. In order to complete the work within stipulated period, the petitioner, immediately after having the work order, made preparation by way of mobilizing the requisite resources and delivered pumps at Nagrota, however, the respondent instead of making payment to the petitioner started harassing it. The Board of Officers meeting was held on 25.11.1997, who inspected the pumps at site and recommended that the accepting officer may accept with deviation, as per prevailing practice and directed the accepting authority to accept these pumps, even then, the payment was not made which resulted in reference of dispute to the Arbitrator and an amount of Rs.5,20,000/- was awarded without interest, which the petitioner received under protest and filed an application under Section 33 of the Arbitration Act for correction and interpretation of Award dated 08.09.2005 before the learned Arbitrator, who corrected the Award, vide communication dated 04.10.2005 to the extent that the awarded amount may be paid to the petitioner within four months from the date of receipt of original award, however, interest was not granted. Feeling aggrieved by the award dated 10.08.2005 and order dated 04.10.2005 passed by the learned Arbitrator, the petitioner has approached this Court by way of filing instant petition on the strength of averments made in it.

3. Upon notice, objecting the petition, respondent has filed the reply on 04.03.2008, stating therein that this petition be rejected being grossly misconceived as the petitioner prays for grant of interest; that the award dated 10.08.2005 itself is contrary to the terms and conditions of the Agreement. Respondent further contends that as per the contract agreement, the work was required to be completed by 02.10.1995 as the provision of water supply was a time bound and an important work, which petitioner did not complete within stipulated time and thereafter, the period of contract was extended upto 30.04.1996 and the petitioner even failed to complete the supply of water pumps of requisite specifications within extended period and his contract was cancelled. It is further contended that even the modified pumps provided by the petitioner were not found, as per specification mentioned in the contract agreement.

4. Respondent also contended that the award passed by the learned Arbitrator along with order passed under Section 33 of the Arbitration Act is unsustainable being totally incorrect, arbitrary beyond the scope of reference as also contrary to law and despite being the fact that petitioner failed to execute the contract within stipulated time, the learned Arbitrator has awarded an amount of Rs.5,20,000/- for which petitioner-firm is not entitled to, thus, according to respondent, the petitioner is not entitled to the interest component.

5. Learned counsel for the petitioner, in furtherance to the case set up, argued that the petitioner is entitled to receive the interest from the date he has supplied the water pumps, as per specifications as well as terms and conditions of the contract, however, the learned Arbitrator without assigni