SECRETARY M O DEFENCE Vs. AJIT SINGH

JUDGEMENT

(1.) This appeal is directed against the order dated 9 th January, 2006 whereby the Calcutta High Court referred the dispute arising between the parties herein to the sole arbitration of Hon'ble Mr. Justice D.K. Basu a retired Judge of Calcutta High Court, with a request to him to adjudicate upon and decide the dispute between the parties. The aforesaid order came to be passed on an application filed by the respondents herein under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act'). By filing the said application, the respondents prayed for appointment of an arbitrator relying on the alleged arbitration agreement being clause No. 14.

(2.) The parties entered into an excavation contract whereby the respondents undertook to carry out certain works on behalf of the appellant herein. In the contract signed by the parties there is a clause being clause No. 14 with the caption "Settlement of Disputes/Arbitration". Part of the said clause which is relevant to the context of this case is reproduced hereunder:

(3.) The aforesaid Clause 14 in the Agreement, however, was scored out and the same was replaced by another clause being clause No. 14. When the parties entered into the agreement and signed the agreement what remains in the agreement was clause No. 14 with the caption "Arbitration with regard to the commercial disputes between the Public Sector Enterprises inter se and Public Sector Enterprises and Government Departments." It reads as follows: