JUDGMENT

J.S. Verma, J.-The point involved for decision is, the effect of The Arbitration and Conciliation Act, 1996 (for short "New Act") in the present case on the arbitration agreement made prior to the commencement of the New Act. Clause VII of the agreement dated December 14, 1993 between the parties is, as under :

"VII. In the event of any question or dispute arising under or out of or relating to the construction, meaning and operation or effect of this agreement or breach thereof, the matter in dispute shall be referred to arbitrator. Both the parties shall nominate one Arbitrator each and the arbitrators shall appoint an umpire before proceeding with the reference. The decision of arbitrators or in the event of their not agreeing the decision of the umpire will be final and binding on the parties. The provisions of the Indian Arbitration Act and Rules made thereunder shall apply for proceedings. The arbitrators or the umpire, as the case may, shall be entitled with the consent of the parties to enlarge the time, from time to time, for making the award. The arbitrators/umpire shall give a reasoned award. The venue of the arbitration shall be Bombay."