( 1 ) THIS appeal is directed against the judgment dated 27-7-2004 passed by the learned District Judge, khurda at Bhubaneswar in Arbitration m. J. C. No. 130 of 2002 rejecting the application filed by the appellants under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter called as the 'act' ).

( 2 ) A contract was executed on 30-8-1992 between the parties in respect of three packages for the work "strengthening and Widening of Sambalpur-Rourkela Road 0. 0 km. To 162. 931 km". In view of three separate packages three separate contracts were executed. The present dispute relates to package No. S. 3 and value of the said contract is rs. 49,31,95,155. 00. Date of commencement pf the work was 20-10-1992 and the same was to be completed within 48 months from the date of commencement. The agreement contained an Arbitration Clause. Undisputedly though the contract work was to be completed within 48 months, the same was completed after 53 months and extension of time had been granted to the respondent for completion of the work. On 1-6-1997 the respondent issued notice to the concerned Engineer of the appellants-State raising a dispute on the ground that the appellants