Sarat Chandra Mohapatra and Ch. Abdur Rahim, JJ. - (1.) THIS is an appeal by defendant No. 1 under Section 39(1)(b) of the Arbitration Act, 1940, (hereinafter referred to as the Act). Undisputedly, plaintiff is a works contractor, who entered into an agreement with the defendant No. 1 for construction of building. In the written agreement there is arbitration clause that in case during continuance of the work any dispute arises between the parties, the same shall be decided by the Chairman of the Municipal Board.
(2.) CASE of the plaintiff is that he completed the work and handed over the building to the Municipality, which was duly inaugurated and the rooms have also been utilised for the purpose for which they were constructed. However, defendant No. 1 has not paid him his legitimate dues. Accordingly, suit has been filed for realisation of Rs. 1,01,450/ - from defendant No. 1 with interest and costs. On receipt of notice, defendant No. 1 filed an application under Section 34 of the Act for stay of the suit asserting that execution of the contract not being complete, arbitration clause in the agreement is in operative for which the suit should be stayed.
(3.) TRIAL court on consideration of materials on the record having found that the arbitration clause has lost its force since the work has already been completed, refused to stay the suit. This appeal arises out of the said order.;