Ranjana P. Desai, J.

The appellant is a body corporate, constituted under the Major Port Trusts Act, 1963 having its office at Mormugao, Goa. Respondent 1 is a partnership firm, registered under the Indian Partnership Act. Respondents 2 and 3 are the arbitrators appointed under the terms of the contract dated 12.10.1985 entered into between the appellant and respondent 1 for construction of transit shed, superstructure for multipurpose general cargo berth. In this appeal, the appellant has challenged the judgment and decree dated 26.03.1996 passed by the Civil Judge, Senior Division, Vasco-da-Gama, Goa in Special Civil Suit No. 72/1991, refusing to set aside the award dated 13.09.1990 passed by respondents 2 and 3.

The brief facts, which led to the impugned order, are as follows: In or about the year 1984, the appellants invited tenders for construction of transit shed, superstructure, the principal items of work to be carried out being : (a) Construction of the superstructure of the transit shed measuring 140.0 m x 55.0 m in plan, comprising R.C. Trusses of 55.0 m span and 9.5 m rise, the bottom chord being prestressed, supported on R.C. Columns spaced 7.75 m apart and 7.5 m high along with a covered platform 5.0 m, wide on one of the longitudinal sides and part of the short sides - complete with pre-cast laterite blocks (or equivalent approved) side walls, pre-cast R.C. Tiles, R.C. Purling covered with AC sheets, flooring and other fixtures as specified, together with associated miscellaneous works including drainage works. The R.C. Columns and the side walls shall be supported upon R.C. Pile Caps Grade Beams constructed by other.

(b) Construction of a customs office in the north east corner of the transit shed, complete with sanitary, water supply and sewage disposal arrangements.

(c) Construction of a retaining wall to support the platform.

(d) Electrical works for the transit shed and the customs office.

The contract for the work was awarded to the respondent 1 vide Works Order No. CR (P)/D-184(TS)/10818 dated 05.02.1985 for the amount of Rs. 1,37,13,845. The scheduled date of commencement was 23.05.1985 and with the period of completion of 15 months, the scheduled date of completion was 22.08.1986. The terms on which the contract was awarded were reduced into writing and an agreement stipulating the terms of contract was executed on 12.10.1985 (for convenience "the said contract"). Clause 19.1 of the said contract reads thus:

"19.1. If any dispute or difference of any kind whatsoever shall arise between the Board of the Engineers and Contractor in connection with or arising out of the contract or the carrying out of the works (whether during the progress of the works or after the termination/abandonment of or breach of the contract), it shall in the first place be referred to and settled by the Engineer who within a period of 90 days after being requested by either party to do so shall give written notice of his decision to the Board and the Contractor. Save as hereinafter proved such decision in respect of every matter so referred shall be final and binding upon the Board and the Contractor until the completion of the work and shall forthwith be given effect to by the Contractor, who shall proceed with the works with all due diligence whether he or the Board requires arbitration as hereinafter provided or not. If the Engineer shall give written notice of his decision to the Board and the Contractor and no claim to arbitration has been communicated to him by either the Board or the Contractor within a period of 90 days from the receipt of such notice, the said decision shall remain final and binding upon the Board and the Contractor. If the Engineer shall fail to give notice of his decision as aforesaid within a period of 90 days after being requested as aforesaid or if either the Board or the Contractor be dissatisfied with any such decision then in any such case either the Board or the Contractor may within 90