(1) In every cases of disputed boundaries the Assistant Records Officer authorised to hold the inqui y may, on the written application of the parties, refer the dispute to one or more arbitrators nominated by the parties respectively, and shall fix such time, and allow such extension of time, as may seem reasonable for the delivery of award :
Provided that it Is appears to the Assistant Records Officer that the State Government or local authority is interested in any such dispute, he shall refuse to make such reference.
(2) To every reference made under sub-section (1) and to every arbitrator nominated thereunder, the provisions of the Arbitration Act, 1940 (Central Act 10 Of 1940) shall, so far as may be, apply.