( 1 ) THE appellant herein was the first defendant in O. S. No. 85 of 1987 which is pending on the file of the Subordinate Judge, Peddapalli. The plaintiff-1st respondent herein had instituted the aforesaid suit for declaration that the proceedings dated 4-6-1984 issued by the third defendant appointing the second defendant as sole arbitrator is illegal, arbitrary and without jurisdiction and also for refund of earnest money deposit and security deposit

( 2 ) THE averments made in the suit can briefly be narrated as follows: It was averred by the first respondent herein that the first defendant-Corporation issued a notice dated 1-6-1982 inviting the tenders for the work of transportation of cement from M/s. Kesoram Cement Factory, Basanthnagar to the stores of the first defendant-Corporation at Ramagundam by road and for unloading and stocking the cement gunny bags in the store of first defendant-Corporation.

( 3 ) IT is further stated by the plaintiff-first respondent herein that in response to the aforesaid tender notice, the plaintiff-1st respondent herein submitted tenders. The first defendant-Corporation i. e. , the appellant herein, addressed a letter dated 1-10