- (1.) Special leave granted.
(2.) This appeal is by the Union of India against the order of the High Court in Civil Revision No. 3153 of 1991. A dispute arose between the appellant and the respondent and that dispute was in terms of their contract referred to an Arbitrator appointed under Condition 70 of General Conditions of Contract. We shall read Condition 70 so far as it is material "Arbitration - All disputes between the parties to the contract (other than those for which the decision of the CWE or any other person is by the Contract expressed to be viable and binding) shall, after written notice by either party to the Contract to the other of them, be referred to the sole arbitration of an Engineer Officer to be appointed by the authority mentioned in the tender documents". If the Arbitrator so appointed resigns his appointment or vacates his office or is unable or unwilling to act due to any reason whatsoever, the authority appointing him may appoint a new arbitrator to act in his place".
(3.) The Arbitrator appointed in terms of Condition 70 conducted the proceedings until he retired voluntarily from the Govt. service on 17th September, 1990. The respondent-contract or then filed an application before the Senior Sub-Judge, Ferozpur under Section 28 of the Arbitration Act, 1940 seeking extension of time for the Arbitrator to make the award. Objection was raised by the Union of India, the present appellant, on the ground that the Arbitrator having retired from Govt. Service was no longer competent to function as an Arbitrator and no further time could be granted to enable him to make an award. It was further submitted that in terms of Condition 70, anew Arbitrator had to be appointed. This contention of the appellant was rejected by the learned Sub-Judge and time was accordingly granted as prayed for by the respondent. Appeal filed by the Union of India was rejected by the learned District Judge. The Civil Revision filed by the Union of India was rejected by the High Court by the impugned order.;