Prakash Tatia, J. - (1.) HEARD learned Counsel for the parties.
(2.) THE petitioner is aggrieved against the order 26th October, 2005, by which the learned District Judge, Chittorgrarh dismissed the petitioner as application filed under Section 8 of the Arbitration and Conciliation Act, 1996, for staying the suit proceedings in a suit which was filed by the non -petitioner against the petitioner. Brief facts of the cases are that a supplementary agreement was executed for work contract, having consideration of Rs. 12,47,427.32 According to the non -petitioner -applicant, the defendant petitioner failed to complete the work and, therefore, the contract was terminated and the work order was given to the other party to complete the work left out by the defendant -petitioner at the cost of the defendant by the third party. According to the plaintiffnon - petitioner, the defendant since completed the work of Rs. 6,71,782/ -, therefore, the remaining work was given to the third party. In that transaction, the plaintiff -non -petitioner had to pay more amount to the third party and thereby the plaintiff -non -petitioner - Union of India suffered loss of Rs. 1,58,489/ -. The plaintiff -non -petitioner, therefore, filed the suit for recovery of Rs. 1,58,489/ -.
(3.) THE petitioner -defendant before filing of the suit by the non -petitioner submitted an application under the Arbitration Act (Old Act) for appointment of Arbitrator for adjudication of same dispute. The Petitioner -defendant's application for appointment of arbitrator was dismissed by the Civil Court on the ground that as per the General Conditions No. 63 and 64 read with Specific Condition No. 21, "the dispute" or "Claim" in relation to amount upto 20% only is covered under the arbitration agreement and in case there is a "dispute" or "claim" beyond 20% of the contract amount, the arbitration clause shall have no application. That decision given on the application of the petitioner -defendant became final and otherwise also, there is no dispute that the matter can be referred to Arbitrator in case it is within 20% of the value of the contract.;