ORDER :

S.C. Parija, J.

1. Heard Learned Counsel for the parties. This appeal is directed against the Judgment dated 17.11.2008, passed by the Learned District Judge, Khurda, at Bhubaneswar, in ARBP No. 31 of 2007, dismissing the application of the Appellant filed under Section 34 of the Arbitration & Conciliation Act, 1996. The brief facts of the case, as detailed in the appeal memo, is that the Appellant invited sealed tender in the prescribed form for execution of "Balance left over works of earth work in formation, construction of bridges & other allied works in Section-M at Talcher end from CH 23000 to CH 24000 (1.00 KM distance) of Sambalpur -Talcher Rail link". The Respondent participated in the tender & the offer made by it was accepted by the Appellant vide letter dated 14.07.1990. The value of the contract work was Rs. 44,68,087/- & the period of completion was 15 months, with effect from 14.08.1990. The contract agreement was executed between the parties on 30.10.1990.

2. The Respondent having failed to complete the contract work within the stipulated period, they requested for extension of time & on their request, time for completion of the contract was extended from time to time. Ultimately, the Respondent completed the contract work on 30.11.1996. After completion of the contract work & payment of the final bill, the Respondent raised a claim for compensation on the ground that they sustained loss due to delay in handing over possession of the work site, supply of the plants, lay out of the profile of the drawing & designs. The Appellant having not accepted the claims of the Respondent, the dispute was referred to the sole Arbitrator, Hon'ble Shri Justice S.K. Mohanty, Retd. Judge of this Court, for adjudication.

3. The Respondent raised the following claims before the Learned Arbitrator.

"(1) Compensation for the idle period of expenditure on establishment held Rs. 76,59,773.

(2) Compensation for monetary loss on contract value during non-working period Rs. 18,09,575.

(3) Quantity variation of transported earth till materials & differential cost of item of work not paid Rs. 26,24,474.

(4) Interest of blockage amount Rs. 1,08,27,473."

4. Learned Arbitrator, after considering the statement of claims made by the Respondent & the counter statement filed by the Appellant, vide award dated 30.09.2006, allowed the claims of the Respondent in respect of claim item Nos. 3 & 4 & rejected claim item Nos. 1 & 2. Accordingly, the Appellant was directed to pay Rs. 11,13,266/- towards the outstanding dues & Rs. 12,46,784 as interest on the said outstanding dues & Rs. 7800/- as interest on the outstanding security deposit till 7.2.2001, along with cost of Rs. 50,000/-, to be paid within a period of three months, failing which, interest @ 18% per annum shall be payable on the total awarded amount.

5. Being aggrieved by the award passed by the Learned Arbitrator, the Appellant filed application under Section 34 of the Arbitration & Conciliation Act, 1996 ("the Act" for short), for setting aside the award, which having been rejected by the Learned District Judge, Khurda, vide impugned Judgment dated 17.11.2008, the present appeal has been filed. Learned Counsel for the Appellant submits that as the final bill in respect of the contract work was passed after furnishing of "no claim certificate" by the contractor-Respondent, they were not entitled to raise any subsequent claim for compensation. It is submitted that the Respondent having received the final bill without any protest, on submission of "no claim certificate", they are estopped from raising any further claim by way of compensation, as has been awarded by the Learned Arbitrator.

6. It is the further case of the Appellant that the award of interest by the Learned Arbitrator for the period from the date of the cause of action till the date of the award is ex facie illegal & contrary to the terms & conditions of the contract agreement & therefore, the same cannot be sustained in law. In