P.K. Misra, J.

1. TheState Government has filed this appeal against the judgment dated 11.12.2000 passed by the Principal Subordinate Judge, Madurai in O.P. No. 22 of 1998 filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act”).

2. The facts, so far as necessary for the decision in the present appeal, are as follows:

On 21.7.1995, there was an agreement executed between the State Government and the contractor (present Respondent No. 1) relating to the work of strengthening of Periyar Dam. Such work commenced on 9.8.1995. However, on 22.11.1995, the officials of the Forest Department of the Kerala Government stopped quarrying work done by the contractor and thereafter the earthwork was also stopped in December. The State of Tamil Nadu identified a fresh place for quarrying about 67 kms. away from the worksite at Periyar Dam and thereafter the work resumed on 8.1.1997. Thereafter, the work was again stopped on 6.2.1997 and the contractor moved the High Court of Kerala and after intervention of the Judiciary, the work resumed on 24.5.1997. Even before the work was resumed, the contractor had made a claim towards compensat