D. S. R. VARMA, J.

( 1 ) HEARD both sides.

( 2 ) THIS appeal is directed against the order and decree, dated 8-4-2005, passed by the XIV Additional Chief Judge, City Civil court, Hyderabad, allowing the petition in o. P. No. 72 of 2003, filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for brevity "the Act") seeking to set aside the award, dated 21-9-2002, passed by the arbitrator.

( 3 ) THE appellant herein is the respondent no. 1, the respondents 1 to 3 herein are the petitioners and the respondent No. 4 herein is the respondent No. 2 respectively in O. P. No. 72 of 2003 before the Court below.

( 4 ) FOR the sake of convenience, in this judgment, the appellant, the respondents 1 to 3 and the respondent No. 4 will be referred to as "the contractor", the "railways" and "the arbitrator", respectively.

( 5 ) THE contractor is the successful tenderer for certain Railway works, particulars of which are not relevant. An agreement was entered into, which contains a clause to the effect that whenever extra work is entrusted, the same rate should be applied upto 25% and in case the works exceed 25%, the rates shall be decided by mutual discussions. The work entrusted to

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