(1.) The Railways challenge the award on the authority of the arbitrator to take up the reference. The Railways suggest that since the reference was an altogether invalid reference, the award passed is void and notwithstanding the ground as to invalidity of the reference having been taken at a belated stage in the arbitral proceedings, that which was not non est to start with could not have been validated by acquiescence or apparent acceptance by the Railways.
(2.) The clause that the Railways rely on is one found in the General Conditions of Contract that govern all railway contracts. The arbitration agreement in such General Conditions lays down the qualifications of an arbitrator depending on the value of the claim. The specific part of the arbitration agreement that is relevant for the present purpose is clause 64(3)(a)(iii):
(3.) The contractor raised some murmur as to whether such term was incorporated into the General Conditions, and thus became part of the subject agreement prior of the subject agreement being concluded, but the Railways show that not only did such stipulation apply to the subject reference, but parties had also understood such stipulation would apply, though the contractor has disputed its effect. The Railways say that since the reference was presided over by a retired Judge and not by a gazetted railway officer, what transpired at the arbitral proceedings should be completely disregarded and the award be set aside as void.