The court clarified that arbitrators must adhere to contract terms and jurisdictions, emphasizing contractual intentions while affirming the non-speaking nature of specific awards.

1. These two cross - appeals (F. A. O.(O.S.) ) No. 14 of 1980 and F.A.O.(O.S.) No. 32 of 1980 arise out of the judgment of a learned single Judge dated November 20, 1979.

2. Messrs Om Parkash Baldev Krishan (hereinafter to be referred as 'the Contractor') submitted a tender for "Provision of Married Accommodation for CPL's / AC's Flt. Sgt. / MWO's / WO's / Near Delhi. The tender was accepted and the work was awarded to the contractor by the Union of India vide agreement number CEDZ - 8 of 1972-73, dated August 21, 73. Clauses 9,26,62 (G) and 70 of the General Conditions of Contract and Clause 3.1 of the Special Conditions of Contract, which are relevant for the decision of these appeals, read as under: -
"9. Suspension of Work - The Contractor shall suspend execution of the Works or any part or parts thereof, whenever called upon in writing by the Garrison Engineer to do so, and shall not resume work thereon until so directed in writing by the Garrison Engineer. The Contractor will be allowed by the G. E. an extension of time (not less than the period of suspension) for completion of the item or group of items of work for which a separate period of completion is given in the contract and of which the suspended work forms part but no other claim in this respect for compensation or otherwise, howsoever shall be admitted". "26. Labour - The contractor shall employ labour in sufficient number to maintain the required rate of progress and of quality to ensure workmanship of the degree required by the Specifications and to the satisfaction of the Engineer - in - Charge.
The Contractor shall remain liable for the payment of all wages or other moneys to his work - people or employees under the Payment of Wages Act, 1936, Minimum Wages Act, 1948. Employers' Liability Act, 1938, Workmen's Compensation Act, 1923, or any other Act or enactments relating thereto and rules framed thereunder from time to time. The Contractor shall work only on and during the hours of a working day unless he obtains the prior written approval of the Engineer - in - charge to do otherwise. If such approval is given no liability in respect of any excess cost arising therefrom shall be incurred by Government.
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"62 (G). If any work, the rate for which cannot be obtained by any of the methods referred to in paras (A) to (E) above, has been ordered on the Contractor, the rate shall be decided by the G.E. on the basis of the cost to the Contractor at site of Works plus 10% to cover all overheads, and profit. Provided that if the Contractor is not satisfied with the decision of the G. E., he shall be entitled to represent the matter to the C.W.E within seven days of receipt of the G.E.'s decision and the decision of the C.W.E. thereon shall be final and binding".
"70. All disputes, between the parties to the contract (other than those for which the decision of the C.W.E. or any other person is by the Contract expressed to be final and binding) shall, after written notice by either party to the Contract to the other of them, be referred to the sole arbitration of an Engineer Officer to be appointed by the authority mentioned in the tender documents."
"3.1. The contractor shall have no claim whatsoever, if on account of any local regulations or otherwise he is required to pay wages in excess of the fair wages shown in the Schedule of Fair Wages."

3. Certain disputes and difference arose between parties. Contractor raised several claims. This included the following four claims: -
"1. Reimbursement / compensation for infructuous expenditure incurred on account of enforced idleness of staff, shut