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1995 (12) TMI 374 - Corporate Laws
Whether the clause in the contract gives rise to an arbitration?
Held that:- A careful reading of the clause in the contract would give us an indication that the Public Health Engineer is empowered to decide all the questions enumerated therein other than any disputes or differences that have arisen between the contractor and the Government. But for Clause 25, there is no other contract to refer any dispute or difference to an arbitrator named or otherwise. Thus Clause 25 of the agreement does not contain an arbitration agreement nor it envisages any difference or dispute that may arise or had arisen between the parties in execution of the works for reference to an arbitrator. The decision of the High Court, therefore, is clearly unsustainable in law. The appeals are accordingly allowed. Appointment of the arbitrator in furtherance of the orders of the Subordinate Judge stands set aside