Shah, J. - (1.) By the impugned order dated 14th July, 1998 in C.R.P. No. 494/87, the learned single Judge of the High Court of Kerala by exercising jurisdiction under S. 115 of the Civil Procedure Code has granted permission to the respondent to amend the application filed on 4-4-1978 under S. 20 of the Arbitration Act, 1940 (hereinafter referred to as "the Act") for appointment of arbitrator to resolve the dispute between the parties so as to convert the same as a suit for recovery of amount claimed therein. On 30-3-1986, the respondent-Corporation filed an interim application being I.A. No. 885 of 1986 for amending the pending application under S. 20 of the Act so as to convert the same as a plaint under Order 7, Rule 1 of C.P.C. for recovery of money. The application was rejected by the trial Court. The High Court set aside the order passed by the trial Court and allowed the same by exercising powers under S. 151 of O. 6, Rule 17 of the Code of Civil Procedure. That order is challenged by filing this appeal.
(2.) It is the case of the appellant that the appellant entered into an agreement with the respondent-District Manager, Food Corporation of India, Palghat, Kerala State to carry out the work of loading-unloading and transportation of foodgrains on behalf of the Corporation from 4th April, 1973 to 4th April, 1975 at or around the godowns of the respondent at Palghat under the terms and conditions embodied in the tender document. The agreement contained an option clause which gave the respondent unilateral option to extend the contract by one year. It is also admitted position that agreement contained a clause for arbitration in case of dispute; that before the expiry period of the contract, appellant informed the respondent on 16-12-1974 that he was not ready and willing to extend the period of contract beyond the original contract period which was to expire on 3rd April, 1975. On the basis of the said communication, respondent-Corporation invited fresh tenders for the period commencing from 4th April, 1975.
(3.) Thereafter, on 3-4-1978, the appellant filed Civil Suit No. O.S. 130 of 1978 before the Court of Subordinate Judge, Palghat for recovery of Rs. 2,05,921.90 from the respondent being money due on account of pending bills, security deposit etc. for the contract period 4-4-1973 to 3-4-1975.;