An umpire in an arbitration proceeding must act within the scope of their jurisdiction, avoid misconduct, and ensure impartiality to prevent reasonable apprehension of bias. The court has limited jurisdiction to interfere in revision with the findings of the lower court regarding reasonable apprehension of bias.

A. MISRA, J.

( 1 ) THE facts giving rise to this revision application, in brief, are as follows: the petitioner who entered into a contract with the Hindusthan Steel Ltd. , rourkela, for making certain constructions in connection with the extension of the latter's coke-oven plant engaged the opp. party as a sub-contractor to carry out certain works concerning the contract. In or about April, 1966, the work was completed and the parties agreed by correspondence to refer their disputes to two arbitrators, one to be nominated by each. Accordingly, Shri B, Das and Shri A. K. Sen were nominated as arbitrators by the petitioner and opposite party respectively. The two arbitrators by their letter dated 15-12-67 informed the parties that they had appointed Shri N. C. Deb as umpire and entered on the reference. At the first meeting of the arbitrators held on 23-2-68, it was decided that issues involved in the reference would be disposed of by them without participation of the umpire and the points on which they failed to agree would be referred to the umpire. On 25-11-68, an application was filed before the learned subordinate Judge, Sundergarh for extension of time to make the award who by bis order dated 7-1-69 extended the time till 6-3-69. On 1-2-69, Shri B. Das, arbitrator nominated by the petitioner wrote to the umpire requesting him to make an award as they, the arbitrators had failed to agree. He sent copies of this letter by way of information to the parties as well as the joint arbitrator Shri A. K. Sen. On the basis of this letter, the umpire purported to assume jurisdiction and proceeded with the arbitration proceeding. The umpire by his letter dated 20-3-69 addressed to the parties requested them to obtain extension of four month's time from the Court and informed them that only on receipt of such extension order action would be initiated by him. On 27-3-69, however, he gave notice to the parties fixing 11-4-69 at 3. 00 p. m. for hearing of the proceeding. The opposite party wrote a letter on 3-4-69 to the umpire asking for an adjournment of the date of sitting pending receipt of opinion from his solicitors, but this was rejected by his letter dated 4-4-69. The representative and solicitor of the opposite party attended the sitting on 11-4-69 under protest. The umpire did not record their protest at the commencement of the minutes of the proceedings of that day and also arbitrarily purported to enhance his fee per sitting from Rs. 300/- to Rupees 1,500/- in spite of objection by the representative of the opposite party, while the petitioner's representative agreed to the same. The solicitors of the opposite party wrote a letter on 12-4-69 to the umpire questioning his right to assume jurisdiction and complaining about the manner in which the date for the sitting was fixed, the meeting was conducted and the minutes recorded. The umpire sent a reply to this letter on 26-4-69 wherein he denied the allegations and stated that the reply was without prejudice to further action which he might decide to take in view of the scurrilous mis-statements, grave distortion of facts and highly defamatory allegations made. On these allegations, an application was filed by the opposite party under Section 5 of the Arbitration Act for grant of leave to revoke the authority of the umpire. The revocation was sought on the ground that the umpire had inherent lack of jurisdiction to enter on the reference and that he misconducted himself and the proceedings in a manner which has created reasonable apprehension in the mind of the opposite party that the umpire will be biased.

( 2 ) THE learned Subordinate Judge allowed the application and granted leave as prayed for on the following findings: (1) The umpire had inherent lack of jurisdiction to enter on the reference as both the arbitrators had not referred the dispute to him; (2) the umpire assumed authority to enter on the reference before the arbitrators had allowed the statutory period to ex