S.C. Ghose, J. - (1.) This appeal by the Appellant, Indian Oil Corporation Ltd., seeks to set aside the judgment and order dated November 29, 1971, passed by the Court of the first instance directing the filing of the Arbitration Agreement contained in the contract between the parties and referring the disputes between the parties mentioned in the letter dated September 7, 1969, a copy whereof is exhibited as annex. D to the petition filed herein to Mr. Anil Chandra Ganguli, the Arbitrator appointed by the Court, upon an application made by the Respondent under Sec. 20 of the Indian Arbitration Act. The facts, of the instant case resulting in the said order are set out hereunder.
(2.) On or about July 17, 1964, fee Respondent No. 2 herein, the Oil and Natural Gas Commission the predecessor -in -title of the Appellant and the Respondent Stewarts and Lloyds of India Ltd., an existing company within the meaning of the Companies' Act. 1956, executed a contract whereby and whereunder the Respondent Stewarts and Lloyds was appointed a contractor for execution of the work mentioned in the said contract in connection with the construction of the Gujarat Refinery. The total stipulated, value of the said contract was Rs. 1,27,11,000. The said contract between the parties contained an Arbitration Agreement to the following effect to wit: Arbitration; G.R.P. (i.e. Gujarat Refinery Project) and S. and L. agree, that the arbitration clause in the tender, document for the purposes of the present contract will be superseded by one given as under: Except where otherwise provided in the contract any question, dispute or difference that shall arise between the engineer -in -charge on the one hand and the contractor on the other hand as to the construction, intent meaning or effect of the contract documents, designs, drawings, specifications, estimates or any one of them or as to any further drawings to be prepared or as to the application of schedule rates to the measurements taken, or as to the materials or the quality thereof or as to the workmanship employed or the execution, or failure to execute the same whether arising during the progress of the work or within 12 months of completion or abandonment thereof or as to any other matter or thing whether of the nature aforesaid or -otherwise howsoever arising out of or in any way relating to or connected with the contract, then every such question, dispute or difference (except -where otherwise herein expressly provided) shall be referred to arbitration for decision and in order to ensure, the work being proceeded with continuity, the contractor shall (in case of any such question, dispute or difference) act upon and give effect to the orders of the engineer -in -charge pending the decision of the arbitration being given and in any case act upon and give effect forthwith to any and every decision of the engineer -in -charge. Arbitration proceedings will be initiated on receipt of written notice from the contractor addressed to the engineer -incharge communicating the existence of any such matter wherein he intends to go in for arbitration. The arbitration proceedings will be in accordance with the Indian Arbitration Act (1940) and any statutory modifications thereof. The venue of the arbitration shall be the place at which the contract is signed or such other place as the Arbitrator at his entire discretion may determine.
(3.) For the purpose of deciding the issue involved in the instant appeal it will be necessary for us to consider and construe another clause of the contract which is set out hereunder: The contract shall be and deemed to be an Indian contract and shall be governed by and construed according to the laws in force in India from time to time and Indian Courts shall have jurisdiction to hear and determine all actions and proceedings arising out of the contract and the contractor hereby submits to the jurisdiction of Courts situated at Baroda for the purpose of any such action and proceedings.;