- (1.) All these appeals pertain to the scope of the arbitration clause under the two contracts entered into by the State of A. P. , one with the appellant in CAs Nos. 4617-18 of 1990 and the other with the appellant incas Nos. 3933-34 of 1990. Both these contracts contain an arbitration clause (clause 73 which is identical. The material part of clause 73 is as follows: "In case of any dispute or difference between the parties to the contract, either during the progress or after the completion of the works, or after determination, abandonment, or breach of the contract, as to the interpretation of the contract, or as to any matter or thing arising there under. . then either party shall forthwith give to the other notice of such dispute or difference and such dispute or difference shall be, and is hereby referred to the arbitration of. . and the award of such arbitrator shall be final and binding on the parties unless contested by either party in a court of law. . Either party may, within a period which shall be fixed by the arbitrator, file before the arbitrator a statement of the case and also all the documents relating to, or having a bearing on the case. . The arbitrator shall have power to view the subject-matter of dispute with, or without the parties or their agents. The arbitrator shall have also power to open up, review, and revise any certificate, opinion, decision, requisition or notice, save in regard to matters expressly excepted, and to determine all matters in dispute which shall be submitted to him and of which notice shall have been given as aforesaid. . " (emphasis ours)
(2.) The High court has set aside the non-speaking awards which were given in the two arbitration proceedings on the ground that the subject- matter of the claims before the arbitrators was beyond the jurisdiction of the arbitrators. In the case of one contract, all the claims have been held to be beyond the jurisdiction of the arbitrator while in the other contract, one claim is allowed and the other claims are held to be beyond the jurisdiction of the arbitrator. There is a cross-appeal filed by the State in respect of one claim which was so allowed.
(3.) In the judgments which are under appeal in these appeals, the approach of the High court has been similar. The High court has examined the terms of the contract and has come to the conclusion that on the interpretation of the contract, the claims which were raised before the arbitrators would not arise under the contract itself and hence they were beyond the jurisdiction of the arbitrator.;