Judgment

Hegde, J.-The vicissitudes of arbitration proceedings are well illustrated by this case. This is the third time this matter is coming before this Court. Even now the last word on the subject has not been said.

2. The appellant is a contractor. He entered into a contract with the Union of India for carrying out certain works in N. E. F. A. One of the clauses in the agreement provided that if any dispute arose between the parties relating to the contract or concerning works done by it, it shall be referred to the sole arbitration of the Superintending Engineer, N. E. F. A. or to his nominee. At one stage as many as six disputes arose between the appellant and the Union of India. They were referred to the Superintending Engineer, N. E. F. A. who appointed one Mr. O. P. Mittal as his nominee for deciding the disputes. In respect of those disputes, the appellant had claimed a sum of Rs. 2,81,871.67 P. During the course of the proceedings before Mr. Mittal, the Superintending Engineer informed him that since he may have to be examined on behalf of the Union of India, it is advisable for him not to continue as the arbitrator in the matter. Thereafter the appellant called upon the S