Aggrieved of the final order dated 27.06.2007 passed in Arbitration Misc. Case No. 13 of 2006 by which challenge to the award dated 31.01.2006 by the appellant-State of Jharkhand (hereinafter referred to as the ‘Department’) has failed, this arbitration appeal under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 has been filed.

2. Briefly stated, the claimant-M/s Sutlej Construction Limited was allotted the construction work of “Open channel from 0.00 K.M to 0.652 K.M and tunnel from 0.652 K.Ms to 0.762 K.Ms under Konar Cannel Irrigation Project at Banaso, district-Hazaribagh” vide letter dated 10.04.1989 and Agreement No. IF2 of 1989-90 was executed on 16.08.1989. The total value of the work was Rs. 3,66,00,000/- and the schedule completion period for the work under the contract was 3 years, that is, by 15.08.1992; time was essence of the contract. Before 10.08.1992, the claimant, which had informed the Department through letter dated 18.09.1989 that its men and machinery have arrived at the site for the work, has written several letters for allotment