JUDGMENT

SAWANT, J.:—The present appeal arises out of an arbitration proceedings. The respondent-Irrigation Department [the Department] proposed to get a aqueduct constructed across the Sirsa river for a. distance of 15.455 Kms. of Sutlej Yamuna Link Canal. A contract on turn-key basis was entered into between the appellant and the respondent on 19th April, 1984 for the total cost of Rs. 6. 10 crores. The drawing and design was to be supplied by the appellant for approval by the Department.

The drawings and designs submitted by the appellant did not show any sealing arrangements with provision for proper bearing pads. Hence, on 6th September, 1984, it was decided to adopt pre-stressed concrete super-structure. This involved increase in the quantities. However, the agreement had provided that in case of any deviation in the design, increase in cost will not be charged to the respondent. The appellant later on, however, claimed extra amount on account of the increase in the quantities and costs. These gave rise to a dispute between the parties and ultimately in July, 1986, the dispute was referred to the arbitration of Chief Engineer of the respondent, Shri Avtar Singh. The claims pre