( 1 ) THESE two matters are directed against the common order dated 22-3-1991 of the II Additional Judge, City Civil Court, Hyderabad passed in O. S. No. 1096 of 1987 and O. P. No. 528 of 1987 and they are also being disposed of by a common order.

( 2 ) THE State of Andhra Pradesh represented by the Superintending engineer, N. S. Canal Circle, Nuzvid and the Executive Engineer, N. S. Left canal, Nuzvid Milavaram are the appellants/petitioners in both the matters and the contractor K. Bapiraju and the sole arbitrator Mohd. Karimullah Khan are the respondents.

( 3 ) THE facts leading for preferring this appeal and revision are, in brief, as follows: the Superintending Engineer, N. S. Left Canal Circle, Nuzvid had invited tenders for "excavation of Machavarm major" from K. M. 6 to K. M. 8. The first respondent herein, K. Bapiraju, contractor, had submitted his tender for that work at Rs. 4,04,759 with 7. 52% excess over the estimated contract value of rs. 3,76,431/ -. The Superintending Engineer accepted the said tender of the contractor and agreement was executed on 29-7-1978. As per the terms and conditions of the contract, the work had to be completed within six mo