P. VENKATARAMA REDDY, J.

( 1 ) THIS revision petition is filed by Union of India represented by the General Manager, South Central Railway questioning the order of the Third Addl. Judge, City Civil Court in O. P. No. 117 of 1993 whereby the learned Judge allowed the respondent s application under Section 8 of Arbitration Act for appointment of sole arbitrator to settle the disputes arising out of the Agreement No. 50/w/bg/91 dated 14-2-1992 entered into between the petitioner and the respondent. The learned Judge appointed Sri Padmanabha Gowd, retired District Judge as sole arbitrator.

( 2 ) THE respondent was awarded a contract by the Railway Administration for stacking and leading of 50 mm gauge stone ballast between KM 129-135 SC-WD Section. The respondent contractor claimed that the Railway Administration did not pay for the work done pursuant to the said agreement. As the agreement contains an arbitration clause as per clause 64 of the General Conditions of Contract, the respondent applied to the General Manager to appoint an arbitrator. There was no response to the request made by the respondent. Hence, he filed the O. P. in the Civil Court for arbitration under various Sections of Arbitration Act, 1940 including Section 8. The stand taken by the petitioners was that the contractor did not collect and spread the ballast and did not execute the work as per the terms of the agreement and as the ballast was urgently required to ensure the safety of railway track, the contract was terminated and was entrusted to another agency. Various allegations made by the contractor were denied and it was contended that the claim of the contractor being untenable, the matter was not referred to arbitration. It was also contended that the claim was barred by limitation. The relevant portion of clause 64 (3) of the General Conditions of Contract is as follows :"64 (3) (a) Matters in question, dispute or difference to be arbitrated upon shall be referred to for decision to: (i) A sole Arbitrator who shall be the General Manager or a Gazetted Railway Officer nominated by him in that behalf in cases where the claim in question is below Rs. 5,00,000. 00 (Rs. five lakhs) and in cases where the issues involved are not of a complicated nature. The General Manager shall be the Sole Judge to decide whether or not the issues involved are of a complicated nature. (II) Two Arbitrators who shall be Gazetted Railway Officers of equal status to be appointed in the manner laid in Clause 64 (3) (b) for all claims of Rs. 5,00,000. 00 (Rs. Five lakhs) and above, and for all claims irrespective of the amount or value of such claims if the issues involved are of a complicated nature. The General Manager shall be the sole Judge to decide whether the issues involved are of a complicated nature or not. In the event of the two Arbitrators being divided in their opinions the matter under disputes will be referred to an Umpire to be appointed in the manner laid down in clause 3 (b) for his decision. (III ). . . . . . . . . . . . . . . . . . . . . . . (b) For the purpose of appointing two arbitrators as referred to in sub-clause (a) (ii) above, the Railway will send a panel of more than three names of gazetted Railway Officers of one or more departments of the Railway to the Contractor, who will be asked to suggest to the General Manager one name out of the list for appointment as the contractor s nominee. The General Manager, while so appointing the contractor s nominee, will also appoint a second arbitrator as the Railway s nominee either from the panel or from outside the panel, ensuring that one of the two arbitrators so nominated is invariably from the Accounts Department. Before entering upon the reference the two Arbitrators shall nominate an Umpire who shall be a Gazetted Railway Officer to whom the case will be referred to in the event of any difference between the two arbitrators. Officers of the Junior Administrative grade of the Accounts Department of the

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