( 1 ) THE short question that falls for determination is whether the old Arbitration act of 1940 or the new Arbitration Act of 1996 would apply in the matter.

( 2 ) THE facts are not in dispute. Respondent was awarded the contract for construction of 1068 houses at Motia Khan. During its execution, disputes arose between the parties and respondent invoked arbitration clause (clause 25) of the contract agreement which amongst other things provided:-

"subject as aforesaid, the provisions of the Arbitration Act 1940 or any statutory modification or any reenactment thereof and the rules made thereunder and for the time being in force shall apply to the arbitration proceedings under this clause"

( 3 ) RESPONDENT then filed petition under section 20 of the old Arbitration Act for appointment of an arbitrator way back in 1982 which was registered as Suit No. 994-A/ 1982. One Sh. Subramanyam, Superintending engineer of appellant/dda was appointed as the sole arbitrator in this. He, however, expired before pronouncing the award. He was substituted by one Sh. O. P. Mittal who entered the reference on 17. 1. 1985 and who also expired before rendering the award. Finally, one RJ. Bakhru