(1.) THIS is a Civil Revision Petition and it arises in this way. The petitioner M. S. Ramiah (briefly 'the contractor'), entered into a contract with the State Government for the construction of a masonry dam at Talakalale which was a part of Sharavathy Valley Project. By Clause 51 of the said contract it was provided that if there was a dispute in regard to 'non-technical matters' relating to the construction, either party may resort to arbitration by giving a notice in writing of the existence of the dispute. On such a notice being given, the matter shall be referred to an arbitration of two persons one to be nominated by the Government and the other by the contractor. Such reference should be deemed to be a submission to an arbitration within the meaning of the Indian Arbitration Act. 1940, or any statutory modification thereof. The award of the arbitrators be final and binding on both the parties.
(2.) IN the year 1960, the contractor raised certain disputes and the matter was ultimately referred to an arbitration composed of two arbitrators, one nominated by the contractor and the other by the Government. The contractor complained before the Arbitrators regarding the acceptance of very high rates for the Lingamanamukhi Dam at 18 to 20 per cent, over and above that for the Talakalale Dam with the additional difficulty of lesser issue rate for surki mortar etc., resulting in an extra cost of Rs. 22,21,454 on Talakalale Dam. This dispute was specifically gone into by the arbitrators and the arbitrators after hearing the parties by their award dated 7-2-1962, held on the said dispute as follows:-
(3.) THE State, on receipt of this letter filed a petition before the District Judge. Bangalore, under Section 33 of the Arbitration Act, praying for an order as follows:-