Unreasonable delay in taking steps after the order made by the arbitrator on July 14, 197s was unreasonable. It remains unexplained. The authority of Mr. P. C. Rao, respondent No. 2, and consequently the arbitration agreement were liable to be revoked and were rightly revoked by the learned Single Judge.

( 1 ) THIS appeal is directed against the order of the learned Single Judge dated August 27, 1982. It was dismissed by us by a short order dated January 25, 1984, Now we proceed to give reasons for that order.

( 2 ) MESSRS Som Nath Chadha and Co. , respondent herein, entered into a contract with the President of India on June 25, 1969. Under that agreement it Was appointed a member of the panel of auctioneers for conducting sales by public auction of such properties the Director General of Supplies and Disposals, Ministry of Works and Housing and Supply, Government of India, New Delhi, may from time to time, at his discretion entrust to it for disposal by auction. The agreement contained arbitration clause, namely, clause 15, which reads as under.

"15. All disputes and differences arising out of or in any way touching or concerning this agreement whatsoever, shall be referred to the sole arbitration of any person nominated by the Secretary of the Government of India or if there be no Secretary, the administrative Head of the Ministry of the Government of India under whose administrative control the DGS and D may be placed for the time being at the time of such nomination. There will be no objection to any such appointment that the person appointed is a Government servant, that he had to deal with the matters to which the agreement relates and that in the course of his duties as such Govt. servant he has expressed any views on all or any of the matters indispute or difference. The award of such arbitrator shall be final and binding on the parties to this agreement. It is a term of this agreement that in the event of such arbitrator to whom the matter is originally referred being transferred or vacating his office by resignation or otherwise or becoming unable to act for any reason, such secretary 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 this agreement. 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 agreement that no person other than a person nominated by the Secretary or Administrative Head of the Ministry as aforesaid should act as arbitrator and, if for any reason that is not posssible, the matter is not to be referred to arbitration at all. Subject as aforesaid, the Indian Arbitration Act 1940 shall apply to the arbitration proceedings under this clause. "

( 3 ) THE respondent, it appears, realised sales tax from the purchasers of the properties sold by auction held by it. Alleging that the Excise and Taxation Officer, Jullundur, had held that the respondent did not fall under the definition of a dealer as defined under section 2 (d) of the Punjab Sales Tax Act and had refunded a sum of Rs. 1. 90,864. 36 deposited by the respondent towards sales tax to it, the appellant, Union of India, claimed a sura of Rs. 1,02,609. 87 on account of the sales tax realised by the respondent acting an their agent during the period July 1971 to November 1971. The respopdent disputed the claim. The Director General Supplies and Disposals requested the Secretary to the Government of India, Ministry of Supply and Rehabilitation, to appoint a sole arbitrator under the terms of the arbitration clause to adjudicate upon the said dispute. The Secretary, consequently, appointed Shri N. S. Mehta, Additional Legal Advisor to the Government of India, as the sole arbitrator by order dated December 16, 1976. There is nothing on the record to show whether he entered upon the reference or resigned and vacated his office and, if so, when. However, by an order dated December, 22, 1977, the Secretary concerned appointed Dr. Bakhshish Singh, Additional Legal Advisor, as the sole arbitrator, to adjudicate upon the dispute.

( 4 ) DR. Bakhshish Singh entered on the reference and called upon the Union of India