R.S. Mohite, J.-This is an appeal filed by the State of Goa, impugning a judgment and order passed by the Ad hoc Additional District Judge, Fast Track Court-I, Margao, Goa in Civil Misc. Application No. 51/2004 (new). By the impugned judgment and order, the Ad hoc Additional District Judge sustained the objection raised by the present respondent to the extent that the arbitrator had allowed the counter claim filed by the present appellant. While doing so, the Court ordered that the respondent was free to agitate the counter claim in case it was permissible in terms of the agreement/law. Rest of the objections raised by the parties were discarded and it was directed that the award be adjusted excluding the amount awarded in the counter claim.

2. Brief facts of the case are that the appellant had entered into an agreement pertaining to farm development works in command area of branch canal of minor M-3 for water course Nos. 3 and 3-A on 4.11.1992. As disputes and differences arose in respect of the said works, the respondent raised claims and gave notice to the appellant to appoint an arbitrator as per clause (25) of the aforesaid agreement. However, as the appellant refu