S.N. Modi, J. - (1.) This is an appeal under Sec. 39 of the Arbitration Act. 1940 (thereinafter referred to as "the Act") against the order of the Additional District Judge Sri Ganganagar referred to set aside the award dated September 15, 1969, made by Shri K.N. Sharma, Chief Engineer, Public Works Department, State of Rajasthan. The facts of the case are that the respondent Messrs. Sharma and Company entered into an agreement with the State of Rajasthan for the construction of Head and Cross Regulator at R.D. 68900 of Rajasthan Canal. This agreement was executed by the respondent on the one hand and by the Executive Engineer, RCP Desert Division. Suratgarh, on behalf of the State of Rajasthan on the other, on March 28, 1962. As per terms of the agreement, the work was to be commenced on February 5, 1962 and completed by June 30, 1962. Extension of lime upto January 19, 1963 was sought for and was granted vide letter dated November 12, 1963 of the Chief Engineer, Rajasthan Canal Project, Jaipur. The work was completed by the respondent within the extended period. Since certain items of claims were not included in the final bill prepared subsequently, the respondent claimed of payment of the omitted items When the claim of the respondent was not accepted by the State of Rajasthan, the former moved an application under Sec. 8 of the Act for appointment of an arbitrator to settle the disputes between the parties Notice of this, application was given to the State of Rajasthan, which opposed the application. The learned Senior Civil Judge, in whose court the application was filed, after hearing the parties allowed the application and appointed Shri R.L. Malhotra, retired Superintending Engineer, Irrigation, Rajasthan, as the sole arbitrator. Aggrieved by this order, the State of Rajasthan went to the High Court in revision. This revision was decided on November 21, 1968, on a joint application presented by the parties. The learned Judge of this Court ordered as under, - - "Accordingly, I allow the revision application in part and while maintaining the order of the Senior Civil Judge, Ganganagar, dated 11.7.66 in so far as he has ordered the making of a reference to arbitration, I modify that order in terms of the application filed by the parties and direct that in place of Shri R.L. Malhotra, the dispute shall now be referred by the trial court to Shri K.N. Sharma, Chief Engineer, P.W.D. (B & R) Jaipur as sole arbitrator for his decision in accordance with the provisions of the Indian Arbitration Act The application may be sent to trial court for the purpose. The parties are left to bear their own pasts of this revision application." The trial court accordingly appointed Shri K.N. Sharma to be the sole arbitrator in the case and directed him to file his award within a period of four months. On the request of the arbitrator time was extended upto September 15, 1969. The arbitrator gave his award on September 15, 1969, which runs as under: - AWARD Subject: - -In the matter or arbitration between M/s. Sharma & Co., partnership firm situated at 80 B. Block, Sri Ganganagar (Petitioner) versus State of Rajasthan (Non petitioner) (Agreement No. 2 of 1961 -62) for the work of constructing Head and Cross Regulator at R.D. 68900 Rajasthan Canal. WHEREAS I, K.N. SHARMA CHIEF ENGINEER, P.W.D. (B & R) RAJASTHAN, Jaipur was appointed as Sole Arbitrator of the disputes between aforesaid parties for the execution of Rajasthan Canal Head & Cross Regulator as per letter No. 674 dated 7 -12 -1968 of Additional District Judge, Sri Ganganagar, give my award under the terms of the agreement. AND WHEREAS I took upon myself the burden of the said reference on 27 -12 -1968. AND WHEREAS the Hon'ble Additional District Judge, Sri Ganganagar was pleased to enlarge the time for making of the award upto 15 -9 -1969. After hearing, examining and considering the statement of both the parties and the oral and documentary evidence produced before me by them and having given consideration to all facts and documents with due care, I make my award as follows: - - Shri S.S. Bhupal, Executive Engineer, Gang Canal, Division, Sri Ganganagar, officer -in -charge on behalf of the State of Rajasthan in his counter statement raised a law point that as no valid agreement as required by article 299 of the Constitution of India was executed between the claimant & the State of Rajasthan I have got no jurisdiction to arbitrate in the matter. He requested that this issue should be decided first I have been appointed arbitrator by the High Court to arbitrate in the matter as such, I have got jurisdiction to arbitrate in the matter. The stamp duty charges payable in respect of this award shall be borne by the claimant Given and signed by me at Jaipur on the 15th day of September 1969 Sd/ -(K.N. Sharma),Chief Engineer, P.W.D. (B & R)Rajasthan, Jaipur,(ARBITRATOR)"
(2.) The arbitrator informed the Court as well as the parties about the making of the award. He also sent the award to the Court which received it on September 29, 1969. The State of Rajasthan then moved in objection petition purporting to be under Ss. 14 and 17 read with Sec. 30 and 33 of the Act.
(3.) The main objections raised by the State of Rajasthan were firstly, that the agreement entered into between the parties on March 28, 1961 and which contained the arbitration clause, was illegal and unenforceable due to non -compliance of the mandatory provisions of Article 299 of the Constitution of India. Another objection raised on behalf of the State of Rajasthan was that the arbitrator allowed Rs. 11,400/ - without assigning any reasons and without any evidence. Some more objections were raised but they need not be mentioned here, as they were not pressed during course of arguments before me in this appeal.;