Judgment

GOSWAMI, J.:- This is an appeal by special leave against the judgment of the Kerala High Court Setting aside the judgment of the Subordinate Judge, Ernakulam and restoring the award of the Arbitrator who had earlier refused the claim of the appellant.

2. The appellant (briefly the contractor) was a successful tenderer for construction of three zonal R.C.C. Overhead Reservoirs, two in Mattancherry and one in Cochin, in connection with the Ernakulam Mattancherry Water Supply Scheme. In the schedule annexed to the notification inviting tenders under the heading Site it was stated that " the soil at the site for Reservoir No.1 and Reservoir No. 2 is loose clay and for Reservoir No. 3, sandy". The tenders was to execute an agreement on a stamped paper before commencing work. It appears later on the Kerala Engineering Research Institute, Peechi, Soil Mechanics and Foundation Division (briefly the Research Institute) submitted a report (Ext. P. 19 dated September 14, 1965) that the sub-soil at the three places chosen as sites for the reservoirs up to 16 m. showed that the top soil was sand, the middle layer clay, and the bottom layer, silty sand or sand. It was stated that the c