( 1 ) THIS appeal is filed under Section 39 (1) of the Arbitration Act questioning the legality and correctness of the judgment and decree dated 18-4-1987 made by the learned Civil Judge, Yadgir, in Misc. No. 2/ 1987, on his file, making award Rule of the Court.

( 2 ) THE essential facts, in brief, are as follow: the construction work in respect of Upper Krishan Project Narayanapur Left Bank Canal Reach No. 1 from Km 35. 5 to Km 41 excluding Rajankollur Tunnel from Ch. 26. 231 to 39. 834, was granted to the respondent under an agreement dated 7-1-1980. The value of the contract was fixed at Rs. 115. 12 lakhs which increases by 3. 22 per cent above the estimated cost. The agreement dated 7-1-1980 stipulated that the contract was to be executed within thirty months fixing the date of completion of the contract on 23-7-1982. Disputes arose between the contractors and the appellants during the progress of the work which could not be settled between them. Clauses 71 and 72 of the agreement provided that in the event of disputes the matters in dispute could be arbitrated in the manner provided therein. Consequently, a panel of three arbitrators was appointed to go into