JUDGMENT : P.C. Misra, J. - This is an appeal u/s 39 of the Indian Arbitration Act, 1940 (hereinafter called the 'Act') against the judgment of the Subordinate Judge, Bhubaneswar in O.S. No. 189 of 1984-I allowing an application u/s 20 of the Act. The present Respondent No. 1 filed the said application u/s 20 of the Act praying for a direction to file the original agreement in Court and for reference of the dispute between the parties to an arbitrator. His case is that he was entrusted as a contractor for execution of the work "construction of 106 Nos. of E.W.S. (b) Houses in Bargarh Housing Scheme" for which an agreement bearing No. 5 F-2 of 1979 was executed between the parties. The allegation is that the agreement stipulates that any dispute arising between the parties during or after the execution of the work would be settled through arbitration. As dispute had arisen touching the execution of the work and repeated demands for payment of his dues did not yield any result, the present application u/s 20 was filed for the above-mentioned reliefs. 2. The present Appellant filed a written statement challenging the maintainability of the case and pleaded that there was neither any arbitration agreement nor any dispute had arisen for reference to an arbitrator. It was stated that the claims in question are barred by limitation and outside the purview of the agreement. It was, however, contended that the contractor was guilty of many lapses including failure to execute the work within the stipulated period and to return the unused departmental materials issued to him and that he was paid all his dues in full and final settlement of all his claims. 3. The Subordinate Judge registered the said application as a suit and has allowed the same by the impugned judgment. He came to hold that Clause 11 of the agreement is an arbitration agreement and there having been disputes, this is a fit case for appointment of an arbitrator u/s 20 of the Act. He therefore, directed the present Appellants to produce the original agreement in Court whereafter the disputes were to be referred to the Arbitration Tribunal, Orissa for arbitration. 4. Learned Counsel appearing for the Appellants has strenuously argued that Clause 11 of the agreement is not an arbitration agreement and, therefore, the entire proceeding u/s 20 of the Act is misconceived. He therefore, directed the present Appellants to produce the original agreement in Court whereafter the disputes were to be referred to the Arbitration Tribunal, Orissa for arbitration. 4. Learned Counsel appearing for the Appellants has strenuously argued that Clause 11 of the agreement is not an arbitration agreement and, therefore, the entire proceeding u/s 20 of the Act is misconceived. He further contended that the disputes said to have arisen are beyond the scope of the agreement for which the same are not referable for arbitration. 5. It has been conceded by the learned Counsel for both parties that the arbitration agreement is contained in Clause 11 of the Conditions of Contract annexed to the F-2 agreement. Clause 11 reads as follows: Clause-II: Alteration in specification and designs The Secretary and/or Engineer-in-charge shall have power to make any alterations or additions to the original specifications, drawings, designs and instructions that may appear to him to be necessary or advisable during the progress of the work and the Contractor shall be bound to carry out the work in accordance with any instruction which may be given to him in writing signed by the Engineer-in-charge and/or Asst. Engineer and/or Engineering Subordinate indirect charge of supervision and such alteration r shall not invalidate the contract and any additional work which the contractor may be directed to do in the manner above specified as part of the work shall be carried out by the Contractor on the same conditions in all respects on which he agreed to do the main work, and at the same rates as are specified in the Schedule of rates for the man-work attached hereto. Extension of time in consequence of alterations: The time after completion of the work shall be extended in the preparation that the additional work bears to the original contract work and the certificate of the Engineer-in-charge shall be conclusive as to such preparation. Extension of time in consequence of alterations: The time after completion of the work shall be extended in the preparation that the additional work bears to the original contract work and the certificate of the Engineer-in-charge shall be conclusive as to such preparation. Rates for work not in estimate or schedule of rates of the district followed by the Government of Orissa: And if the additional work includes any class of work for which no rate is specified in this contract, then such class of work shall be carried out at the rates entered in the sanctioned schedule of rates of the State of Orissa for the District of Puri during the period when the work is being carried out on and if such last mentioned class of work is not entered in the schedule of rates of Orissa (Puri District) as followed by the Government of Orissa, then the Contractor shall within seven days of the date of his receipt of the order to carry out the work inform the Engineer-in-Charge of the rate which it is his intention to charge for such class of work and if the Secretary and or Engineer-in-charge on behalf of the Chairman does not agree to this rate, he shall by notice in writing be at liberty to cancel his order to carry out such class of work and arrange to carry it out in such manner as he may consider advisable, PROVIDED ALWAYS that if the Contractor shall commence work of any expenditure in regard thereof the rates, shall have been determined or lastly hereinbefore mentioned, then and in such case he shall only be entitled to be paid in respect of the work carried out or expenditure incurred by him prior to the date of the determination of the rate as aforesaid according to such rate or rates as shall be fixed by the Secretary/Engineer-in-charge on behalf of the Chairman. In the event of a dispute the decision of the Chairman of the Trust shall be final. (The last sentence has been underlined by me for emphasis) Learned Counsel appearing for the Respondents referred to the underlined portion "in the event of a dispute the decision of the Chairman of the Trust shall be final" in Clause 11 and submits that the same constitutes the arbitration agreement by virtue of which the application u/s 20 of the Act is maintainable. The learned Counsel appearing for the Appellants submits that Clause 11 of the agreement deals with alteration in specification and designs and the above underlined sentence refers to determination of the rates and dispute arising therefrom. An arbitration agreement has been dined in the Act which means a written agreement to submit present or future dispute to arbitration. The learned Counsel appearing for the Appellants has relied upon a decision reported in Praharaj Partners Vs. State of Orissa and Another, to support his argument that the words "in the event of a dispute the decision of the Chairman of the Trust shall be final" are sufficient to constitute an arbitration. In the decision referred to above his Lordship was dealing with a case where the contents of a clause was that the decision of Public Health Engineer shall be final in respect of all questions relating to the meaning of the specifications, drawings and instructions and as to the quality of workmanship or materials used in the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, drawing, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works or the execution or failure to execute the same whether arising during the progress of the work or after the completion or the sooner determination thereof of the contract. There is no dispute that no particular form is necessary to constitute an arbitration agreement nor is it necessary that the words such an arbitration or arbitrator required to be mentioned so as to bring the same within the meaning of "arbitration agreement" as defined in the Act. The essentials of an arbitration agreement are: (1) that there should be an agreement, (2) that the agreement should be in writing; and, (3) that the agreement should be, to refer either a present or future dispute for arbitration. According to the learned Counsel appearing for the Respondents Clause 11 satisfies the requirements of the definition of "arbitration agreement" and, therefore, the learned Court below was justified in allowing the application u/s 20 of the Act. According to the learned Counsel appearing for the Respondents Clause 11 satisfies the requirements of the definition of "arbitration agreement" and, therefore, the learned Court below was justified in allowing the application u/s 20 of the Act. The aforesaid sentence "in the event of a dispute the decision of the Chairman of the Trust shall be final" occurs in the sub-paragraph in Clause 11 of the agreement under the heading "Rates for work not in estimate or schedule of rates of the district followed by the Government of Orissa". In the said sub-paragraph it has been provided that if the additional work includes any class of work for which no rate is specified in the contract, then such class of work shall be carried out at the rates entered in the sanctioned schedule of rates of the State of Orissa for the district of Puri during the period when the work is being carried out. It further states that if such class of work is not entered in the schedule of rates applicable to the district of Puri, then the Contract shall within seven days of the date of his receipt of the order to carry out the work inform the Engineer-in-charge of the rate at which he intends to claim for such class of work the Secretary or the Engineer-incharge on behalf of the Chairman does not agree to the rate specified by the Contractor, he shall by notice in writing be at liberty to cancel his order and make alternative arrangement for carrying it out in such manner as he may consider advisable. The proviso to the said sub-paragraph stipulates that if the Contractor commences the work on the rates which have been determined by the Secretary or the Engineer- in-charge on behalf of the Chairman, he shall be paid at that rate, the last sentence in that sub-paragraph being "in the event of a dispute the decision of the Chairman of the Trust shall be final". Thus the last sentence in the sub-paragraph necessarily refers to a situation where rate is specified in the contract or in the schedule of rates followed by the Government of Orissa and in respect of which there has been a determination by the Secretary/Engineer in-charge on behalf of the Chairman. Thus the last sentence in the sub-paragraph necessarily refers to a situation where rate is specified in the contract or in the schedule of rates followed by the Government of Orissa and in respect of which there has been a determination by the Secretary/Engineer in-charge on behalf of the Chairman. The said clause by virtue of the context in which it has been written cannot by any stretch of imagination be comprehensive enough to embrace any dispute which might arise concerning the execution of the work or in any way arising out of or relating to the contract. Thus the words "in the event of a dispute the decision of the Chairman of the Trust shall be final" even if construed as an arbitration agreement its scope shall be limited to the particular dispute relating to the rates for the additional work, which does not find place in the contract or in the schedule of rates followed by the Govt. of Orissa. 6. The application u/s 20 of the Act contains the disputes said to have been arisen between the parties which according to the Plaintiff-Respondents, arose out of the execution of the work in the contract. It does not breathe a word that the said disputes relates to the additional works for which rate has not been specified in the contract or in the schedule of rates by the Govt. of Orissa in the district in question. The inevitable conclusion would, therefore, be that the dispute said to have arisen is beyond the scope of arbitration as per the arbitration agreement contained in Clause 11 of the F-2 agreement. 7. One of the conditions required to be specified for an order u/s 20 of the Act is that the arbitration agreement applies to the difference that has arisen between the parties. If such difference is outside the scope of the arbitration agreement there can be no reference for arbitration. In the present case the disputes enumerated in the application are beyond the scope of arbitration as per the arbitration agreement contained in Clause 11 of the F-2 agreement and, therefore, the prayer made in the application u/s 20 of the Act cannot be allowed. 8. In the result, therefore, the impugned judgment is set aside and the appeal is allowed. In the facts and circumstances of the case, there shall be no order as to costs. 8. In the result, therefore, the impugned judgment is set aside and the appeal is allowed. In the facts and circumstances of the case, there shall be no order as to costs. Final Result : Allowed