S. N. Sapra ( 1 ) THE present petition has been filed by petitioner under Section 20 of Arbitration Act, 1940, thereby praying that the arbitration agreement be directed to be filed in this Court and the disputes and differences, as mentioned in the petition, be referred to the arbitrator, to be appointed inaccordance with the agreement. ( 2 ) IT is alleged that petitioner is a reputed manufacturer and supplier of soaps. ( 3 ) RESPONDENT invited petitioner to participate in an enquiry for supply of soap woolen powder which resulted into issuance of an advance accep accpetance of tender dated February 28, 1983. Respondent called upon petitioner to submit advance sample before commencement of bulk supply and also furnish the security deposit of Rs. 35,425 before March 21, 1983. It is alleged that petitioner commenced the manufacturing of the stores after receipt of result of advance sample only from letter dated June 1, 1983. Certain disputes arose between the parties. ( 4 ) NOTICE was issued to respondent to show cause as to why arbitration agreement be not filed in Court. Respondent has filed reply to the petition. ( 5 ) IN para 17 of the petition, petitioner has allowed that arbitration clause, applicable to the contract is clause 24 of DGS and D (revised) which reads as under : (I) "in the event of any question, dispute or difference arising under these conditions or any special conditions of contract, or in connection with this decision of which is specially provided for by these or the special conditions the same shall be referred to the sole arbitration of an officer in the Ministry of Law, appointed to be the arbitrator by the Director General of Supplies and Disposals, I will have no objection that the arbitrator is a Government Servant that he had to deal with the matters to which the contract relates or that in the course of his duties as a Government servant he has expressed views on all or any of the matters disputes or differences. The award of the arbitrator shall be final and binding on the parties to this contract. The award of the arbitrator shall be final and binding on the parties to this contract. (ii) In the event of the arbitrator dying neglecting or refusing to act or resigning or being unable to act for any reason, or his award being set aside by the court for any reason shall be lawful for the Director General of Supplies and Disposals to appoint another arbitrator in place of the outgoing arbitrator in the manner aforesaid. (iii) It is a further term of this contract that no person other than the person appointed by the Director General of Supplies and Disposals as aforesaid should act as arbitrator and that, if for any reason that is not possible the matter is not to be referred to Arbitration at all. (iv) The arbitrator may from time to time with the consent of all the parties to the contract enlarge the time for making the award. (v) Upon every and any such reference the assessment of the costs incidental to the reference and award respectively shall be in the discretion of the arbitrator. (vi) Subject as aforesaid, the Arbitration Act, 1940 and the rules thereunder and any statutory modification thereof for the time being in force shall be deemed to apply to the arbitration proceedings under this clause. (vii) If the value of the claim in a reference exceeds Rs. 1 lakh, the arbitrator shall give reasoned award. " ( 6 ) IN para 16 of the petition, petitioner has alleged that there is an arbitration clause applicable to the contract and that vide letter dated March 7, 1987, petitioner requested respondent to appoint in arbitrator. Inreply to this, respondent admitted that there is an arbitration clause in the contract. However, it has been denied that respondent failed to refer the case to arbitrator. It is further alleged by respondent that before referring the case to arbitration, respondent has to complete some departmental formalities. Same were under process and in the meantime petitioner filed the present petition. ( 7 ) RESPONDENT has not denied the existence of arbitration agreement between the parties. Though, it is alleged that before the matter could be referred to arbitration, certain deparemental formalities were to be completed by petitioner. However, it is not stated as to what are these departmental formalities. ( 7 ) RESPONDENT has not denied the existence of arbitration agreement between the parties. Though, it is alleged that before the matter could be referred to arbitration, certain deparemental formalities were to be completed by petitioner. However, it is not stated as to what are these departmental formalities. ( 8 ) I am of the view that the existence of arbitration agreement between the parties has not been denied by respondent. The disputes, which have been mentioned in the petition, are also covered by the arbitration clause. Under the circumstances, I allow the petition and direct the respondent to file arbitration agreement in Court. I further direct Director General of Supplies and Disposals, Government of India, to appoint an arbitrator inaccordance with Clause No. 24 of DGS and D-68 (revised ) within two months from the date of receipt of the notice and refer the disputes, as raised in this petition, to the arbitrator.