Summarize the following court judgment. Appeal No. 693 of 1957. Appeal from the judgment and Order dated the 25th May	 1956 of the Punjab High Court in F.A.C. No. 89/D of 55. N. C. Chatterjee	 section K. Kapur	 N. H. Hingorani and Ganpat Rai	 for the appellants. H. J. Umrigar and T. M. Sen	 for the respondent. January 20. The Judgment of the Court was delivered by SHAH J. On May 3	 1937	 M/s. Alopi Parshad and Sons Ltd.	 who will herinafter be referred to as the Agents	 were	 under an agreement in writing	 appointed by the Governor General for India in Council	 as from October 1	 1937	 agents for purchasing ghee required for the use of the Army personnel. The Government of India	 by cl. 12 of the agreement	 undertook to pay to the Agents the actual expenses incurred for purchasing ghee	 cost of empty tins	 expenses incurred on clearance of Government tins from the railway	 export land customs duty levied on ghee purchased and exported from markets situated in Indian States	 octroi duty	 terminal tax or other local rates on ghee	 and certain other charges incurred 796 by the Agents. The Government also agreed to pay to the Agents at rates specified in the agreement: (1) the financing and overhead (mandi) charges incurred in the buying markets. (2) the cost of establishments and contingencies provided by the Agents on the Government 's account for carrying out the purchase and supply of ghee	 and (3) the buying remuneration. In consideration of the Government paying to the Agents a sum of rupee one and anna one only per one hundred pounds nett weight of finally accepted ghee	 as combined financing and overhead (mandi) charges	 the Agents by cl. 13 undertook to provide the working capital and also to bear the costs	 charges and expenses	 including financing and overhead charges incurred by them in buying ghee in the market. The Agents also undertook	 by cl. 14	 to bear the establishment and contingency charges for the duo performance by them of the terms of the agreement	 and the Government agreed to pay in consideration thereof annas 14 and pies 6 per every hundred pounds of ghee accepted. The Government also agreed to pay to the Agents remuneration for services rendered in purchasing ghee	 at the rate of one rupee per one hundred pounds nett weight of accepted ghee. Pursuant to the agreement	 the Agents supplied from time to time ghee to the Government of India	 as required. In September	 1939	 the World War 11 broke out	 and there was an enormous increase in the demand by the Government of ghee. On June 20	 1942	 the original agreement was	 by mutual consent	 revised	 and in respect of the establishment and contingencies	 the uniform rate of annas 14 and 6 pies per hundred pounds of accepted ghee	 was substituted by a graded scale: for the first 5 thousand tons	 the Agents were to be paid at the rate of Re. 0 14 6 per hundred pounds	 for the next five thousand tons	 at the rate of annas 8 per hundred pounds	 and at the rate of annas 4 per hundred pounds	 for supplies exceeding ten thousand tons. Even ill respect of 797 remuneration for services	 a graded scale was substituted: for the first five thousand tons	 remuneration was to be paid at the rate of Re. 1 per hundred pounds	 at the rate of annas 8 per hundred pounds	 for the next five thousand	 and annas 4 per hundred pounds	 for supplies exceeding ten thousand tons. This modification in the rates became effective from September 11	 1940. By their communication dated December 6	 1943	 the Agents demanded that the remuneration	 establishment and contingencies	 and mandi and financing charges	 be enhanced. In respect of the buying remuneration	 they proposed a 25 per cent increase; in respect of establishment and contingencies	 they proposed an increase of 20 per cent.	 and in respect of mandi and financing charges	 an increase of 112 per cent. This revision of the rates was claimed on the plea that the existing rates	 fixed in peace time	 were "entirely superseded by the totally altered conditions obtaining in war time. " To this letter	 no immediate reply was given by the Government of India	 and the Agents continued to supply ghee till May	 1945. On May 17	 1945	 the Government of India	 purporting to exercise their option under cl. 9 of the agreement	 served the Agents with a notice of termination of the agreement. On May 22	 1945	 the Chief Director of Purchases	 on behalf of the Government of India	 replied to the letter dated December 6	 1943	 and informed the Agents that normally no claim for revision of rates could be entertained during the currency of the agreement and especially with retrospective effect	 but a claim for ex gratia compensation to meet any actual loss suffered by an agent	 might be entertained	 if the Agents established circumstances justifying such a claim. The Chief Director of Purchases called upon the Agents to submit the report of their auditors on the agency accounts	 for the ghee supplied	 as also a statement in detail	 showing the actual expenditure incurred. The notice dated May 17	 1945	 was waived by mutual consent	 and under an arrangement dated May 16	 1946	 the Agents agreed to supply five 798 thousand tons of ghee by October 31	 1946	 on which date	 the agreement dated May 3	 1937	 was to come to an end. By their letter dated July 1	 1946	 the Agents claimed that a dispute had arisen under the contract	 and appointed one Nigam to be arbitrator on their behalf to adjudicate upon the dispute	 pursuant to cl. 20 of the terms of the agreement dated May 3	 1937	 and. called upon the Government of India to appoint their arbitrator. The Government of India	 by their letter dated July 10	 1946	 nominated one Rangi Lal to be arbitrator on their behalf. Before the arbitrators	 the Agents made their claim under four heads: (1) The Agents claimed that the agreement dated June 20	 1942	 was not binding upon them	 and they were entitled to Rs. 23	08	372 8 0 being the difference between the buying remuneration	 establishment and contingency charges due under the agreement dated May 3	 1937	 and the amount actually received. The details of this claim were set out in Sch. A. (2)In the event of the arbitrators holding the agreement dated June 20	 1942	 was binding	 a revision of the rates for establishment and contingencies	 and an additional amount of Rs. 6	91	600 4 0 at such revised rates as set out in Sch. B. (3)Revision of the rates fixed under the agreement dated June 20	 1942	 of the mandi charges	 and an additional amount of Rs. 14	47	204 6 3	 at the revised rates as set out in Sch. C. (4)Damages for wrongful termination of the agreement in the month of October	 1946	 amounting to Rs. 2	41	235	 as set out in Sch. The arbitrators did not arrive at any agreed decision	 and the dispute was referred to Lala Achru Ram who was nominated an umpire. The umpire was of the view that the agreement dated June 20	 1942	 was valid	 and the claim as set out in Sch. A was untenable; that the claims set out in Sch. B and Sch. C	 did not arise out of the agreement	 and he had no jurisdiction to adjudicate upon the same; and that as the claim set out in Sch. D	 was outside the scope of 799 the Reference	 he was incompetent to give any finding on that claim. This Award was filed in the court of the Sub ordinate Judge	 First class	 Delhi. The Agents applied to set aside the Award on the grounds that the umpire was guilty of misconduct in that he failed to give an adequate opportunity to the Agents to present and substantiate their case before him	 and that in holding that the claims as described in Schedules B	 C and D	 either did not arise out of the agreement or were outside the scope of the Reference	 the umpire erred. The learned Subordinate Judge held that the umpire was in error in leaving undetermined claims described in Sch. B and Sch. D	 which were within the scope of the Reference	 and that the claim described in Sch. C was properly left undecided as it was outside the scope of the Reference. He also held that the Award was vitiated on account of judicial misconduct	 because the Agents were not allowed by the umpire sufficient opportunity to place their case. The learned Subordinate Judge	 in that view	 proceeded to set aside the Award	 but he declined to supersede the Reference	 and left it to the parties to "appoint other arbitrators in view of cl. 20 of the agreement	 for settling the dispute. " Against the order of the Subordinate Judge	 the Union of India appealed to the High Court of East Punjab. Khosla	 J.	 who heard the appeal	 confirmed the order passed by the court of first instance. The learned Judge agreed with the view of the Subordinate Judge that the umpire bad been guilty of judicial misconduct. The learned Judge observed in his judgment that the claim of the Agents	 as described in Schedules B and C	 was not beyond the arbitration agreement. In so observing	 presumably	 the learned Judge committed some error. The Subordinate Judge had come to the conclusion that the claim described in Sch. C	 was beyond the arbitration agreement	 and no reasons were given by Khosla	 J.	 for disagreeing with that view. Appeal 31 of 1953 under the Letters Patent	 against the judgment of Khosla J.	 was dismissed by a 102 800 Division Bench of the High Court of East Punjab	 observing that the claim detailed in Sch. B arose out of the contract	 but that it was unnecessary to decide whether the claim described in Sch. C for an increase in the financing and overhead mandi charges	 was properly ruled out by the umpire. In the meantime	 by letter dated August 9	 1952	 the Agents called upon the Government of India to appoint their arbitrator under cl. 20 of the agreement dated May 3	 1937	 for a fresh adjudication of the dispute	 and intimated that they had again appointed Nigam to be their arbitrator. The Government of India informed the Agents by their letter dated August 14	 1952	 that they had filed an appeal against the judgment of the Subordinate Judge	 Delhi	 and in the circumstances	 the question of appointing an arbitrator	 did not arise until the final disposal of the appeal. The Government	 however	 without prejudice to their rights	 including the right to prosecute the appeal	 again appointed Rangi Lal to be arbitrator on their behalf. After the Appeal under the Letters Patent	 was decided by the East Punjab High Court on Decemher 16	 1953	 the arbitrators entered upon the reference. On March 1	 1954	 the Agents submitted their claim	 contending that the supplementary agreement dated June 20	 1942	 was void and not binding upon them	 and that	 in any event	 on the representations made on December 6	 1943	 and from time to time thereafter	 they were assured by the Chief Director of Purchases that the claim made by them would be favourably considered by the Government of India	 and relying on these assurances	 they continued to supply ghee in quantities demanded by the Government after incurring " heavy extra expenditure". They also claimed that they were constantly demanding an increase in the mandi and financing charges	 but the Chief Director of Purchases	 who was duly authorized in that behalf by the Government	 gave repeated verbal assurances that their demands would be satisfied	 and requested them to continue supplies for the successful prosecution of the war. Contending 801 that the Government of India was estopped from repudiating their claim set out in Schedules B and C	 in view of all the facts and circumstances stated in the petition	 the Agents prayed for a declaration that the supplementary agreement dated June 20	 1942	 was void and not binding upon them	 and for a decree for payment of Rs. 27	48	515 with interest at the rate of 6 per cent. per annum from March 1	 1954	 and	 in the	 alternative	 for a decree for Rs. 25	63	037 7 3	 with interest at the rate of 6 percent. per annual from March 1	 1954	 till recovery. This claim of the Agents was resisted by the Government of India. Inter alia	 it was denied that any assurances were given by the Director of Purchases	 or that the Agents continued to supply thee relying upon such alleged assurances. It was asserted that the Agents continued to supply thee without insisting upon any modification of the agreement	 because they found	 and it must be presumed that they found	 it profitable to do so under the terms fixed under the supplementary contract dated June 20	 1942. The claims made for the additional buying remuneration	 for mandi charges and for establishment and contingency charges	 were denied. It was urged that	 in any event	 the claim for additional buying remuneration and for mandi charges and for reimbursement of establishment and contingencies	 was not covered by cl. 20 of the agreement	 under which the submission to arbitration was made	 and the arbitrators had no jurisdiction to adjudicate upon those claims. On the claim made by the Agents	 and the denial thereof	 the arbitrators incorporated the points of contest in the form of certain issues. On May 2	 1954	 the arbitrators made an award rejecting the primary claim on the view that the supplementary agreement dated June 20	 1942	 was for consideration and the same was valid and binding upon the Agents. On the alternative claim	 they awarded	 under the head of establishment and contingencies	 Rs. 80	994 12 6	 being the actual loss which	 in their view	 the Agents had suffered	 and Rs. 11	27	965 11 3	 in addition to the amounts received by the Agents from the Government 802 for mandi and financing charges. The arbitrators accordingly awarded an amount of Rs. 13	03	676 12 6 with future interest from November 15	 1949	 till the V. date of realization	 and costs. The Union of India The award was filed in the court of the Commercial Subordinate Judge	 Delhi	 on June 2	 1954. The Government of India applied under sections 30 and 33 of the Indian Arbitration Act	 to set aside the award on the grounds that it was invalid	 that it had been improperly procured	 and that it was vitiated on account of judicial misconduct of the arbitrators. The Commercial Subordinate Judge held that the arbitrators had committed an error apparent on the face of the award in ordering the Union to pay to the Agents additional remuneration and financing and overhead charges	 but	 in his view	 specific questions having been expressly referred for adjudication to the arbitrators	 the award was binding upon the parties and could not be set aside on the ground of an error apparent on the face thereof. The learned Judge	 accordingly	 rejected the application for setting aside the award. Against the order made by the Subordinate Judge	 an appeal was preferred by the Union of India to the High Court of East Punjab at Chandigarh. At the hearing of the appeal	 counsel for the Agents sought to support the award on the plea that certain questions had been specifically referred to the arbitrators	 and it was open to the arbitrators to make the award which they made	 on the basis of quantum meruit. The High Court held that there was no specific reference of any questions of law to the arbitrators	 and the decision of the arbitrators was not conclusive and was open to challenge	 because it was vitiated by errors apparent on the face of the award. The High Court reversed the order passed by the Subordinate Judge	 and set aside the award of the arbitrators	 holding that there was no "legal basis for awarding any compensation" to the Agents for any loss which they might have sustained. This appeal has been filed with leave of the High Court under el. 133 (1)(a) of the Constitution. 803 The extent of the jurisdiction of the court to set aside an award on the ground of an error in making						. the award is well defined. The award of an arbitrator may be set aside on the ground of an error on the face thereof only when in the award or in any document incorporated with it	 as for instance	 a note appended by the arbitrators	 stating the reasons for his decision	 there is found some legal proposition which is the basis of the award and which is erroneous Champsey Bhara and Company vs Jivaraj Balloo Spinning and Weaving Company	 Limited (1). If	 however	 a specific question is submitted to the arbitrator and he answers it	 the fact that the answer involves an erroneous decision in point of law does not make the award bad on its face so as to permit of its being set aside In the matter of an arbitration between King and Duveen and Others (2 ) and Government of Kelantan vs Duff Development Company Limited (3). Was the reference made by the parties to the arbitrators a specific reference	 that is	 a reference inviting the arbitrators to decide certain. questions of law submitted to them? If the reference is of a specific question of law	 even if the award is erroneous	 the decision being of arbitrators selected by the parties to adjudicate upon those questions	 the award will bind the parties. In the reference originally made to the arbitrators by the letter of the Agents on July 1	 1946	 and the reply of the Government dated July 10	 1946	 a general reference of the dispute was made in terms of el. 20 of the agreement. Even though the award made on that reference	 was set aside by the Subordinate Judge	 the arbitration was not superseded	 and the reference was expressly kept alive	 reserving an opportunity to the parties to appoint fresh arbitrators pursuant to the agreement	 for settling the dispute; and by letters respectively dated August 2	 1952	 and August 14	 1952	 a general reference was again made to the arbitrators. Paragraph 14 of the letter written by the Agents on August 2	 1952	 evidences an intention to serve the notice under cl. 20 (1) L.R. 5o I.A. 324. (2) L.E. (1913) 2 K.B.D. 32. (3) L.R. 1923 A.C. 395. 804 of the agreement. Issues were undoubtedly raised by the arbitrators	 but that was presumably to focus the attention of the parties on the points arising for adjudication. The Agents had made their claim before the arbitrators	 and the claim and the jurisdiction of the arbitrators to adjudicate upon the claim	 were denied. The arbitrators were by the terms of reference only authorized to adjudicate upon the disputes raised. There is no foundation for the view that a specific reference	 submitting a question of law for the adjudication of the arbitrators	 was made. We agree	 therefore	 with the view of the High Court that the reference made	 was a general reference and not a specific reference on any question of law. The award may	 therefore	 be set aside if it be demonstrated to be erroneous on the face of it. The original agreement dated May 3	1937	 was modified by the supplementary agreement dated June 20	 1942	 and the arbitrators have held that the modified agreement was binding upon the Agents. By the agreement as modified	 a graded scale was fixed for the establishment and the contingencies to be paid to the Agents	 and also for the mandi charges and overhead expenses. The arbitrators still proceeded to award an additional amount for establishment and contingencies and an additional amount for mandi charges. By el. 14(a)	 read with el. 12(b) (2) of the agreement	 the rate at which establishment and contingency charges were to be paid	 was expressly stipulated	 and there is no dispute that the Government of India have paid to the Agents those charges at the stipulated rate for thee actually purchased. The award of the arbitrators shows that the amount actually received from the Government	 totalled Rs. 6	04	700 9 0	 whereas	 according to the accounts maintained by the Agents	 they had spent Rs. 6	77	542 0 3. Granting that the Agents had incurred this additional expenditure under the head ` establishment and contingencies '	 when the contract expressly stipulated for payment of charges at rates specified therein	 we fail to appreciate on what ground the arbitrators could ignore the express 805 covenants between the parties	 and award to the Agents amounts which the Union of India had not agreed to pay to the Agents. The award of the arbitrators	 awarding additional expenses under the head of establishment and contingencies	 together with interest thereon	 is on the face of it erroneous. Before the arbitrators	 a number of arhatias who supplied thee to the Agents	 appeared and produced extracts from their books	 showing the amounts actually due to them from the latter. Detailed charts	 showing the total amount due under each head of expenditure to each arhatia	 were produced. The arbitrators were satisfied that the statements produced	 reflected a general rise in prices and cost of labour. Taking into consideration the fact that the other persons were buying thee at rates considerably in excess of the stipulated rates	 the arbitrators held that the Agents were entitled to be reimbursed to the extent of Rs. 11	27	965 11 3. But the terms of the contract	 stipulating the rate at which the financing and overhead charges were to be paid under el. 13(a) read with cl. 12(b)	 remained binding so long as the contract was not abandoned or altered by mutual agreement	 and the arbitrators had no authority to award any amount in excess of the amount expressly stipulated to be paid. Mr. Chatterjee	 on behalf of the Agents	 submitted that the circumstances existing at the time when the terms of the contract were settled	 were "entirely displaced" by reason of the commencement of hostilities in the Second World War	 and the terms of the contract agreed upon in the light of circumstances existing in May	 1937	 could not	 in view of the turn of events which were never in the contemplation of the parties	 remain binding upon the Agents. This argument is untrue in fact and unsupportable in law. The contract was modified on June 20	 1942	 by mutual consent	 and the modification was made nearly three years after the commencement of the hostilities. The Agents were fully aware of the altered circumstances at the date when the modified schedule for payment of overhead charges	 contingencies and buying remuneration	 was agreed 806 upon. Again	 a contract is not frustrated merely because the circumstances in which the contract was made	 are altered. Section 56 of the Indian Contract Act provides " A contract to do an act which	 after the contract is made	 becomes impossible	 or	 by reason of some event which the promiser could not prevent	 unlawful	 becomes void when the act becomes impossible or unlawful." Performance of the contract had not become impossible or unlawful; the contract was in fact performed by the Agents	 and they have received remuneration expressly stipulated to be paid therein. The Indian Contract Act does not enable a party to a contract to ignore the express covenants thereof	 and to claim payment of consideration for performance of the contract at rates different from the stipulated rates	 on some vague plea of equity. " The parties to an executory contract are often faced	 in the course of carrying it out	 with a turn of events which they did not at all anticipate a wholly abnormal rise or fall in prices	 a sudden depreciation of currency	 an unexpected obstacle to execution	 or the like. Yet this does not in itself affect the bargain they have made. If	 on the other hand	 a consideration of the terms of the contract	 in the light of the circumstances existing when it was made	 shows that they never agreed to be bound in a fundamentally different situa tion which has now unexpectedly emerged	 the contract ceases to bind at that point not because the court in its discretion thinks it just and reasonable to qualify the terms of the contract	 but because on its true construction it does not apply in that situation. When it is said that in such circumstances the court reaches a conclusion which is 'just and reasonable ' (Lord Wright in Constantine 's case(1) or one 'which justice demands ' (Lord Sumner in Hirji Mulji vs Cheong Yue Steamship Co. Ltd. (2) this result is arrived at by putting a just construction upon the contract in accordance with an 'implication. . from the (1) 	 186. (2) 	 510 807 presumed common intention of the parties ' speech of Lord Simon in British Movietonews Ltd. vs London and District Cinemas Ltd. (1). There is no general liberty reserved to the courts to absolve a party from liability to perform his part of the contract	 merely because on account of an uncontemplated turn of events	 the performance of the contract may become onerous. That is the law both in India and in England	 and there is	 in our opinion	 no general rule to which recourse may be had as contended by Mr. Chatterjee	 relying upon which a party may ignore the express covenants on account of an uncontemplated turn of events since the date of the contract. Mr. Chatterjee strenuously contended that in England	 a rule has in recent years been evolved which did not attach to contracts the same sanctity which the earlier decisions had attached	 and in support of his contention	 he relied upon the observations made in British Movietonews Ld. vs London and District Cinemas Ld. In that case	 Denning	 L.J.	 is reported to have observed : ". . no matter that a contract is framed in words which taken literally or absolutely	 cover what has happened	 nevertheless	 if the ensuing turn of events was so completely outside the contemplation of the parties that the court is satisfied that the parties	 as reasonable people	 cannot have intended that the contract should apply to the new situation	 then the court will read the words of the contract in a qualified sense; it will restrict them to the circumstances contemplated by the parties; it will not apply them to the uncontemplated turn of events	 but will do therein what is just and reasonable. " But the observations made by Denning	 L.J.	 upon which reliance has been placed	 proceeded substantially upon misapprehension of what was decided in Parkinson & Co. Ld. vs Commissioners of Works (3)	 on which the learned Lord Justice placed considerable reliance. The view taken by him	 was negatived in (1) L.R. 1052 A.C. 166 at pp. 185 & 186. (2) (1951) 1 K.B.D. 19O	 201	 (3) (1949) 2 K.B. D. 632. 103 808 appeal to the House of Lords in the British Movietonew 's case (1952) A.C. 166 already referred to. In lndia	 in the codified law of contracts	 there is nothing which justifies the view that a change of circustamences	 " completely outside the contemplation of parties" at the time when the contract was entered into	 will justify a court	 while holding the parties bound by the contract	 in departing from the express terms thereof. Parkinson and Co. Ld. vs Commissioners of Works (1) was a case in which on the true interpretation of a contract	 it was held	 though it was not so expressly provided	 that the profits of a private contractor	 who had entered into a contract with the Commissioners of Works to make certain building constructions and such other additional constructions as may be demanded by the latter	 were restricted to a fixed amount only if the additional quantity of work did not substantially exceed in value a specified sum. The Court in that case held that a term must be implied in the contract that the Commissioners should not be entitled to require work materially in excess of the specified sum. In that case	 the Court did not proceed upon any such general principle as was assumed by Denning	 L.J.	 in the British Movietonews Ld. vs London and District Cinemas Ld. We are	 therefore	 unable to agree with the contention of Mr. Chatterjee that the arbitrators	 were justified in ignoring the express terms of the contract prescribing remuneration payable to the Agents	 and in proceeding upon the basis of quantum meruit. Relying upon section 222 of the Indian Contract Act	 by which duty to indemnify the agent against the consequences of all lawful acts done in exercise of the authority conferred	 is imposed upon the employer	 the arbitrators could not award compensation to the agents in excess of the expressly stipulated consideration. The claim made by the Agents was not for indemnity for consequences of acts lawfully done by them on behalf of the Government of India; it was a claim for charges incurred by them in excess of those stipulated. Such a claim was not a claim for (1) (1949) 2 K.P.D. 632. (2) (1951) 1 K.B.D. 190	 201. 809 indemnity	 but a claim for enhancement of the rate of the agreed consideration. Assuming that the Agents relied upon assurances alleged to be given by the Director in charge of Purchases	 in the absence of an express covenant modifying the contract which governed the relations of the Agents with the Government of India	 vague assurances could not modify the contract. Ghee having been supplied by the Agents under the terms of the contract	 the right of the Agents was to receive remuneration under the terms of that contract. It is difficult to appreciate the argument advanced by Mr. Chatterjee that the Agents were entitled to claim remuneration at rates substantially different from the terms stipulated	 on the basis of quantum meruit. Compensation quantum meruit is awarded for work done or services rendered	 when the price thereof is not fixed by a contract. For work done or services rendered pursuant to the terms of a contract	 compensation quantum meruit cannot be awarded where the contract provides for the consideration payable in that behalf Quantum meruit is but reasonable compensation awarded on implication of a contract to remunerate	 and an express stipulation governing the relations between the parties under a contract	 cannot be displaced by assuming that the stipulation is not reasonable. It is	 therefore	 unnecessary to consider the argument advanced by Mr. Chatterjee that a claim for compensation on the basis of quantum meruit	 is one which arises out of the agreement within the meaning of cl. 20. Granting that a claim for compensation on the basis of quantum meruit	 may be adjudicated upon by the arbitrators in a reference made under el. 20 of the agreement	 in the circumstances of the case before us	 compensation on that basis could not be claimed. The plea that there was a bar of res judicata by reason of the decision in the Letters Patent Appeal No. 31 of 1953	 has	 in our judgment	 no force. The Subordinate Judge set aside the award on the ground that there had been judicial misconduct committed by the umpire and also on the view that the claims made	 as described in Schedules B and D	 were not outside 810 the competence of the arbitrators. The High Court in appeal under the Letters Patent	 did confirm the order	 setting aside the award; but there was no binding decision between the parties that the claim described in Sch. B	 that is	 the claim for establishment and contingency charges	 was within the competence of the arbitrators in reference under el. 20.It may be observed that according to the High Court of East Punjab in the Appeal No. 31 of 1953	 under the Letters Patent	 it was not necessary to express any opinion whether the claim in Sch. C was within the competence of the arbitrators	 and the claims described in Sch. D does not appear to have been agitated in the second arbitration proceeding. We	 accordingly	 agree with the view of the High Court that the Award of the arbitrators was liable to be set aside because of an error apparent on the face of the award. In this view	 the appeal fails and is dismissed with costs. Appeal dismissed.

The appellants were appointed under an agreement in writing by the Governor General as agents for purchasing and supplying ghee required for the Army personnel with effect from October 1	 1937. After the outbreak of the World War 11 there was an enormous increase in the demand of ghee by the Government and the agreement was revised by mutual consent on June 20	 1942	 and the original rates of payment were scaled down. On December 6	 1943	 the appellants made a representation to the Government for enhancing the rates as conditions had become 794 abnormal. According to the appellants they were given assu rances that their	 claims would be favourably considered by the Government and relying on these assurances they continued to supply ghee in quantities demanded by the Government incurring heavy extra expenditure. The Government did not enhance the rates and the matter was referred to arbitration under the agreement of 1937. Before the arbitrators the appellants contended that the agreement Of 1942 was not binding upon them and claimed payment on the basis of the agreement Of 1937; and in the alternative claimed payment on the basis of increased rates of mandi charges	 additional buying remuneration and contingency charges. These claims were resisted by the Government and it was denied that any assurances were given by the Government to enhance the rates. The arbitrators incorporated the points of contest in the form of issues. By an award dated May 2	 1954	 the arbitrators rejected the primary claim of the appellant holding that the agreement of 1942 was binding. On the alternative claim they awarded a sum of money for loss suffered by the appellants on account of establishment and contingencies	 and another sum for mandi and financing charges. The award was filled in the Court of the Commercial Sub judge	 Delhi	 and the Government applied to have it set aside. The Sub judge held that though there was an error on the face of the award in ordering the payment of additional remuneration and financing and overhead charges the award could not set aside as specific questions had been expressly referred for adjudication to the arbitrators and the award was binding on the parties. On appeal the High Court held that no specific questions of law had been referred to the arbitrators and that the award was vitiated by errors apparent on the face of the award. Held	 that the award was liable to be set aside because of an error apparent on the face of the award. An arbitration award may be set aside on tile ground of an error on the face of it when the reasons given for the decision	 either in the award or in any document incorporated with it	 are based upon a legal proposition which is erroneous. But where a specific question is referred	 the award is not liable to be set aside oil the ground of an error on the face of the award even if the answer to the question involves an erroneous decision on a point of law. In the present case there was a general reference and not a specific reference on any question of law. Champsey Bhara and Co. vs Jivraj Balloo Spinning & Weaving Co.	 Ltd.	 L. R. 50 1. A. 324	 In the matter of a arbitration between King and Duveen L.R. 1913 2 K.B.1). 32	 and Government of Kelantan vs Duff Development Co.	 Ltd.	 L. R. 	 relied on. The contract provided for payment of charges at rates specified therein and the arbitrators could not ignore the express covenants between the parties and award amounts not agreed to be 795 paid. A contract is not frustrated merely because the circumstances in which it was made are altered. The courts have no general power to absolve a party from the performance of his part of the contract merely because its performance has become onerous on account of an unforseen turn of events. Constantine 's case 	 Hirji Mulji vs Cinemas Ltd. Steamship Co.	 Ltd.	 	 British Movietonews Ltd. vs London and District Cinemas	 L. R. and Parki son &Co.	 Ltd. vs Commissioners of Works. (1949) 2 K. B. D. 632	 referred to. British Movietonews Ltd. vs London and District Cinemas Ltd. (1951) 1 K.B.D. 190	 disapproved. The award which ignored the express terms of the contract prescribing the remuneration payable could not be justified as proceeding upon the basis of quantum meruit. Compensation quantum meruit may be awarded for work done or services rendered only when the price thereof is not fixed by a contract. For work done or service rendered pursuant to the terms of a contract	 compensation quantum meruit cannot be awarded where the contract provides for the consideration payable in that behalf.