Judgment

B.L.HANSARIA, J.

(1) THE appellant impugns the judgment of the High court of Madhya Pradesh by which it has upheld the order of the District Judge, Jabalpur, setting aside the award of the arbitrators in exercise of power conferred by Section 30(a) of the Arbitration Act, 1940, hereinafter the Act.

(2) THE award to be set aside was one which had come to be passed following the order of the District Judge dated 6/05/1987 in Civil Suit No. 1-A/87 by which an earlier award had come to be remitted to the arbitrator for reconsideration keeping in view the legal arguments advanced. The first award owes its origin to the following question referred for determination by the two arbitrators named in the order of the District Judge passed on 12/04/1985:

"WHETHER the State is not liable to reimburse to the applicant Rs. 3,42,69,847.00 for the period 7/08/1979 to august 31/08/1984 on account of difference in wages,"

(3) THE reference was made on an application made by the appellant under Section 20(1 of the Act. That application was based on the terms of the agreement entered into by the appellant with the State of Madhya Pradesh relating to cons