( 1 ) THIS judgment will dispose of the objections filed by the respondent-Union of India (I. A. No. 6257/91) under Sections 16, 30 and 33 of the Indian Arbitration Act 1940 to the Award dated 14th December, 1990 as rendered by Shri N. H. Chandwani. The claimant as well as the respondent had entered into a contract vide agreement No. 8/ee/cdxi II/83-84. The said agreement contained an arbitration clause (Clause 25) for settlement of disputes between the parties which reads as follows:-

"clause 25. Settlement of disputes by Arbitration Except where otherwise provided in the contract all questions and disputes relating to the meaning of the specifications, designs drawings and instructions herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right matter or thing whatsoever, in any way arising out of or relating to the contract designs drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works or the execution or failure to execute the same whether arising during the progress of the work or after the completion or abandonment thereof shall be referred to the sole arbitration of the person appointed by the Chief Engineer Central Public Works Department, in charge of the work at the time of dispute or if there be no Chief Engineer, the administrative head of the said Central Public Works Department at the time of such appointment. It will be no objection to any such appointment that the arbitrator so appointed is a Government servant, that he has to deal with the matters to which the contract relates and that in the course of his duties as Government servant he had expressed views on all or any of the matters in dispute or difference. The arbitrator to whom the matter is originally referred being transferred or vacating his office or being unable to act for any reason, such Chief Engineer or administrative head as aforesaid at the time of such transfer, vacation of office or inability to act, shall appoint another person to act as arbitrator in accordance with the terms of the contract. Such person shall be entitled to proceed with the reference from the stage at which it was left by his predecessor. It is also a term of this contract that no person other than a person appointed by such Chief Engineer or administrative head of the CPWD, as aforesaid should act as arbitrator and, if for any reason that is not possible, the matter is not to be referred to arbitration at all. In all cases where the amount of the claim in dispute is Rs. 50,000. 00 (Rupees Fifty Thousand) and above, the arbitrator will give reason for the award.

SUBJECT as aforesaid the provisions of the Arbitration Act, 1940 or any statutory modification or re-enactment thereof and the rules made thereunder and for the time being in force shall apply to the arbitration proceeding under this clause. It is also a term of the contract that the party invoking arbitration shall specify the dispute or disputes to be referred to arbitration under this clause together with the amount or amounts claimed in respect of each such dispute.

IT is also a term of the contract that if the contractor (s) do/does not make any demand for arbitration in respect of any claim (s) in writing within 90 days of receiving the intimation from the Government that the bill is ready for payment, the claim (s) of the contractor (s) will be deemed to have been waived and absolutely barred and the Government shall be discharged and released of all liabilities under the contract in respect of those claims.

THE arbitrator (s) may from time to time with the consent of the parties enlarge the time for making and publishing the award. "

( 2 ) THE petitioner had moved this Court by filing a petition under Section 20 of the Arbitration Act i. e. Suit No. 2722/87 for appointment of an arbitrator to adjudicate the disputes which had arisen between the parties. The dispute