In the event of disagreement between the Arbitrators, the Umpire has jurisdiction to adjudicate on the entire reference.

( 1 ) THIS is an appeal by the State of M. P. against the judgement dated 1-8-1981 passed by the Court of District Judge, Ujjain in Civil Suit No. 8-B of 1980 whereby the learned District Judge while refusing to set aside the Award dated 27-8-1979 under S. 30 of the Arbitration Act, has made the Award a Rule of the Court and granted a decree for Rs. 1,13,435/- in favour of the Contractor respondent against the State of M. P. , the appellant.

( 2 ) THE material facts giving rise to this appeal, briefly stated, are as follows:-the appellant State of M. P. through the Executive Engineer, Public Works Department (B and R), Ujjain on 22-10-1966 entered into a contract with the respondent M/s. Preconco (hereinafter referred to as the Contractor) for construction of a bridge across Gambhir river as per the terms and conditions stipulated in the formal deed of Contract. Clause 17 of the Contract provided for a reference to arbitration in case of dispute arising between the Executive Engineer representing to the contract stated therein. As the question in controversy in the present appeal involves construction of the said reference Clause-17, the same may be reproduced usefully at the outset. "17. provided always that in case any question, dispute or difference shall arise between the E. E. and the contractor (s) as to what additions, if any, ought in fairness to be made to the amount of the contract by reason of the works being delayed through no fault of the contractor (s) or by reason or on account of any directions or requisitions of the E. E. involving increased cost to the contractor (s), beyond the cost properly attending the carrying out of the contract according to the true intent and meaning of the signed drawings and specifications, or as to the works having been duly completed or as to the construction of these presents or as to any other matter or thing arising under or out of this contract except as to the matters left during the progress of the works to the sole decision or requisition of the E. E. under clauses Nos. 1, 4, 8 and 9, or in case the contractor (s) shall be dissatisfied with any certificate of the E. E. under clause 6 or under the provision in clause 13 or in case he shall withhold or not give any certificate to which they may be entitled, or as to the right of the contractor (s) to receive any compensation or as to the amount of such compensation payable to them under clause 18 then such question, dispute or difference or such certificate or the value of matter which should be certified as the case may be, as to be from time to time submitted to the arbitration of a tribunal composed of one arbitrator nominated by the contractor (s) and one arbitrator nominated by the E. E. /s. E. In the event of a disagreement between the arbitrators, on any matter or matters such matter or matters shall be referred to an umpire to be nominated by the C. E. and the Award of such arbitrators or the umpire is to be final and where necessary to be equivalent to a certificate of the E. E. and the contractor (s) are to be paid accordingly. "

( 3 ) THE contractor demanded extra payment of Rs. 2,12,525/- and interest from the date of payment of final Bill for digging a further depth of 10-feet in the foundations beyond design levels. The State did not agree for the payment and thus, a dispute arose. The Contractor appointed Shri P. G. Joglekar, a retired Superintending Engineer, as its Arbitrator but initially the State did not appoint any. By lapse of time Shri Joglekar became the sole Arbitrator. The State then moved the Court of District Judge, Ujjain under Sec. 9 of the Arbitration Act and eventually in terms of compromise reached in the High Court, the State was given three weeks time to appoint its Arbitrator. This Court in Civil Revision No. 434/71 by order dated 7-9-1972 also directed that the parties shall appoint an Umpire as well, in the first sitting of the Arbitrators. The State then appointed Shri K.