Judgment

K. RAMASWAMY, J

(1) SPECIAL leave granted.

(2) THE respondent had entered into a contract on 7/1/1983 to construct 13 units of Type-V Quarters at the estimated cost of Rs. 27,34,000.00. He was to complete the construction and hand over possession on 13/8/1984. Despite extension of the time on 7 occasions, finally up to 30/6/1988, the construction was not completed resulting in termination of the contract. As up to 34th bill the appellant paid to the respondent a sum of Rs. 24,34,100.91 ps. towards the executed work. The contractor laid proceedings under Section 20 of the Arbitration Act, 1940 (for short the Act) for reference to arbitrate the disputes. The joint arbitrators appointed thereon entered upon reference on 10/4/1989 and nominated Mr A. Biswas, the second respondent as an umpire. Since the joint arbitrators could not make and publish the award within the time, the umpire was called upon to enter upon the reference. Accordingly on 25/4/1990 the umpire had entered upon the reference and made an interim award on 26/7/1990 for a sum of Rs. 6,02,000.00. The contractor laid his claim for a sum of Rs. 37,37,885.00. The appellant laid counter-