The necessary facts for disposal of this appeal are that the respondent/contractor had agreed to execute i.e. work relating to the QM Store, Magazine, SO’s Mess & Quarter Guard including internal electrical installation at Battalion Hqrs. SSB Balrampur (UP). The contract was awarded on 09.06.2011. Claiming unjustified withholding of amounts due as well as price escalation on account of the extension of the period of the contract, the Arbitration Clause was invoked by the contractor. The appellant contended that under Clause 2 of the General Conditions of Contract (GCC) it had right to withhold amounts, which it finally appropriated on account of delay by determining those sums to liquidated damages. The amounts so withheld was Rs.12,46,906/-. It was also contended that the contract did not contain any escalation clause and that the contractor could not therefore claim any amounts. The Arbitrator negated both these contentions and held that the appellant was responsible for an initial delay of 155 days and later for 705 days in the execution of the contract and consequently the escalation claimed was justified.