A party cannot introduce new objections in an appeal that were not previously raised during arbitration proceedings.

1. This is an appeal under S.37 of the Arbitration and Conciliation Act, 1996 from the judgment and order dated 04.02.2011 delivered in case No. Misc.(ARB)12/2008 by the District Judge, West Tripura, Agartala.

2. Facts are mostly admitted. The respondent, hereinafter 'the contractor' , was awarded the work, namely 'Replacement of bailey bridge at Ch 34.80 km. on Agartala - Simna road by R.C.C. Box Culvert (length 24.00 m.) 8.00 m. Triple Cell Job No.TP / CAU / 265/2000-01' under agreement No.T / EE / B&R / AGAR - II / SE - IV / 144/2001-2002, for an estimated cost of Rs.26,04,217 whereas the tender value was Rs.35,93,559 with 37.99% above.

3. After completion of the work, the contractor raised various disputes, including paying him the escalation price. The work was awarded in PWD Form No.7 and the clause 10CC was not included there. Hence, the contractor requested for incorporation of the said clause in the agreement on several occasions as per the guidelines issued by the Secretary, PWD under No.F.4(94)PWD@ / 89 dated 18.07.1989. After reference of the disputes, the Sole Arbitrator had framed several issues on the claims of the contractor. The Issue No.10 reads as under:
'Whether the claimant is entitled an amount of Rs.1,55,714/- being the Escalation under clause 10 CC?'

4. In the reply to the statement of fact as submitted by the contractor, the State of Tripura in their counter - statement, has categorically stated in para 13 as under:
'In respect to the paragraph 4(x) of the claim statement, it is submitted that, there is no provision in the agreement for payment of escalation under Clause 10 CC. Hence, he is not entitled to get any payment against this demand.'

5. In para 4(x) of the statement of fact, the contractor raised the claim as under: 'The claimant is entitled payment (sic) to payment of escalation under Clause 10 CC. For the purpose, a bill had been prepared for an amount of Rs.1,55,714/- and the said bill was also submitted to the concerned Executive Engineer vide letter No.JLP / FA - 1 / MNP / BC / 04-05 dated 21.2.2005 but unfortunately the said prayer was denied by the Executive Engineer vide his letter No.F.13(8) / EE - II / 1219 dated 19.5.2005. 'But it had been also asserted in the statement of claim that the said bill was not finalised giving rise to the dispute in this regard.

6. On the face of such rival claims, the Sole Arbitrator had framed the Issue No.10 as reproduced above. The Sole Arbitrator has awarded the price escalation on the analogy of reasons as provided in the arbitral award, which is reproduced hereunder:
'The claimant is entitled an amount of Rs.1,55,714 against price escalation under clause - 10 CC and the said bill has been prepared and submitted to the Executive Engineer for payment. But the payment was denied by the Executive Engineer as there is no provision in the agreement. A Memorandum was issued by the Secretary, PWD vide No.4(94)PWD@ / 89, dated 18.7.89 for incorporation of clause - 10 CC in all agreement which was already executed in contract forms PWD 7 and 8 w.e.f. 18.7.89. He also instructed to accept the same in all tenders invited after 18.7.89. In a number of cases, the Deptt. had to agree for incorporation of clause - 10CC at a much later stage also. It was instructed in the said Memo that past cases should be dealt with accordingly and should invariably be ensured that the incorporation of clause - 10 CC is no longer lost sight of to avoid complication. The agreement in the instant case was executed in PWD form 7 and the claimant has int