D.K. Sen, J. - (1.) Under a contract in writing No. HSCL/M/AJt-2/65 dated 22nd September 1965 entered into by and between Hindustan Steelworks Construction Limited, the appellant and M/s. Mansha Singh and Company, the respondent, a part of the earth work in site levelling for the Bokaro Steel Plant at Marafari, Dhanbad, Bihar was allotted by the appellant the respondent who agreed to execute the same on the terms and conditions Prescribed in the contract.
(2.) Clause 18 of the general conditions of the said contract contained an arbitration clause providing for settlement of questions, disputes or differences arising out of or in connection with the contract with certain exceptions in the manner as follows : (a) The respondent would submit in writing the questions or matters in dispute to the appellant. (b) The appellant would intimate its decision on such disputes to the respondent within a reasonable time thereafter in writing. (c) If the respondent was dissatisfied with the decision of the appellant on any ground or if the appellant failed to reach a decision within a reasonable time, the respondent would be entitled, within ten days of the receipt of such decision or after the expiry of a reasonable period of time, to demand in writing that the matters in question or dispute or difference be referred to arbitration. (d) The demand for arbitration would be delivered to the appellant in writing specifying the matters in question or difference, or disputes and only the same would be referred to arbitration.
(3.) The work under the said contract was commenced by the respondent on the 1st October, 1965 and completed by July, 1968. Disputes and differences arose between the parties during the performance of the contract. The respondent pressed for its claims which were disputed by the appellant and requested the appellant to allow and include the same in the final bill.;