A.K. Jog, J. - (1.) Indian Institute of Technology, Kalyanpur, Kanpur (called the Institute), a body corporate was established by and under Institutes of Technology Act. 1961, to provide for education and research in various branches of Engineering. Technology. Sciences and Acts.
(2.) The works department of the Institute floated tenders on 8th October. 1987 for eight different works. Tenders of M/s. Anushree Contractors and Consultant Associate Private Limited. New Delhi, called the Contractors (respondent No. 1) were accepted and works were awarded as per details given in Paragraph 8 of the writ petition. For each contract, articles of agreements were executed by the Institute and the Contractor. Details of articles of agreements, except clause 55, are not necessary for the purpose of the present petition, which provided for arbitration, in case of dispute and/or difference arising between the parties. Clause 55 as quoted in Paragraph 14 of the writ petition reads : "(a) All disputes and differences arising, between the parties to this agreement in the matter of meaning and interpretation of these articles of agreements and conditions whether giving rise to any claim settlement or not concerning the works, during or after the construction of building, shall be referred to a sole arbitrator by mutual agreement of parties to this contract, falling which to the President, for the time being of the Indian Institute of Engineers who may be appointed as a sole arbitrator and the award of such arbitration shall be final and conclusive and binding on the parties hereto. The submission shall be deemed to be submission to arbitration under the meaning of the Arbitration Act, 1940 or any statutory modification re-enactment thereof for the time being in force."
(3.) The agreement containing aforequoted arbitration clause is admitted to the parties.;