SUDHIR RANJAN ROY, J. - (1.) AN abortive application for stay under S.34 of the Arbitration Act is the genesis of the instant appeal by the defendants.
(2.) THE defendant No. 1 the West Bengal Comprehensive Area Development Corporation, a statutory body (hereinafter referred to as the Corporation) invited tenders for construction of "Field channel" at village Upar-Gugui and Mahultaur I and II in the district of Purulia against a tender notice dated February 29, 1981. THE plaintiff, Sasanka Sekhar Banerjee (respondent), a contractor, submitted a tender with all formalities which was ultimately accepted by the defendant No.1. A printed contract form was executed by and between the plaintiff and the defendant No. 1 on the 1st day of June, 1981. Clause 25 in the said printed agreement provides for settlement of all disputes arising out of the contract by referring the same to the sole arbitration of the Executive Vice-Chairman of the Corporation or to an Arbitrator to be appointed by him if he is unable or unwilling to act.
(3.) A dispute having arisen between the parties over execution of the contract and consequent alleged non-payment of the final bill of the plaintiff and non-issuance of payment certificates in respect of some of the earlier paid bills, there was exchange of letters between the parties and ultimately on August 3, 1982 the plaintiff issued a lawyer's notice upon the defendants demanding payment of his alleged dues and issuance of payment certificates. In the said notice, reference was made to the arbitration clause (clause 25) in the agreement and the defendants were allowed time for two months to refer the matter to the sole Arbitrator if they so desired, failing which legal action was proposed.;