Judgment

Banerjee, J.-These appeals by the grant of Special Leave pertains to the effect of the usual ‘excepted clause’ vis-a-vis the arbitration clause in a Government contract. While it is true and as has been contended, that the authorisation of the arbitrators to arbitrate, flows from the agreement but the High Court in the judgment impugned thought it fit to direct adjudication of ‘excepted matters’ in the agreement itself by the arbitrators and hence these appeals before this Court.

2. At the outset, it is pertinent to note that in the usual Governmental con­tracts, the reference to which would be made immediately hereafter, there is exclusion of some matters from the purview of arbitration and a senior officer of the Department usually is given the authority and power to adjudicate the same. The clause itself records that the decision of the senior officer, being the adjudicator, shall be final and binding between the parties-this is what popularly known as ‘excepted matters’ in a Government or Governmental agencies’ contract.

3. ‘Excepted matters’ obviously, as the parties agreed, do not require any further adjudication since the agreement itself provides a named adjudicator