S. N. Sapra ( 1 ) M/s Nagina Enterprise, the present petitioner, has filed an application under Section 20 of Arbitration Act, 1940 thereby praying that the arbitration agreement between the parties be directed to be filed in Court and an arbitrator be appointed in accordance with arbitrator clause. ( 2 ) PETITIONER is a sole proprietory concern of one Shri K. Nagina. Petitioner is manufacturer of various types of soap and is registered with National small Industries, Corporation, New Delhi. ( 3 ) IT is alleged that a contract dated November 26, 1984 was entered into between the parties for supplying of 5 lakh units of soap toilet by petitioner to respondent. In accordance with the terms of contract, petitioner manufactured the material as per the specification petitioner offered 2,10,000 units of soap toilet for inspection and samples were drawn for inspection by the Inchage T and C, Section Thamaya Road, Amritsar. After inspection of the aforesaid material, 1,80,000 cakes were accepted and balance 30,000 cakes were rejected in chemical test. Again petitioner offered 2,70,000 cakes and on October 16, 1985 samples were drawn from 2,55,000 cakes by the representative of I. G. S. New Delhi. Out of this quantity only 1,80,000 cakes were rejected. It is alleged that rejection of material was unjustified and malafide. Regarding the balance supply for 75,000 units respondents have been silent throughout. ( 4 ) PETITIONER has alleged that various disputes, as mentioned in para 12 of the petition, have arisen between the parties. The parties are governed by the arbitration clause 24 of the General Condition of D. G. S. andd. ( 5 ) RESPONDENTS filed written statement. The allegations on merits were denied. However, the existence of arbitration clause was not disputed. It was alleged in the written statement that there existed no disputes between the parties. ( 6 ) ON the pleadings of the parties, following issues were framed on March 8, 1988 : 1. Whether there exists no dispute between the parties which can be referred to the arbitration? OPR 2. Whether the petitioner has made out any specific dispute in the petition ? OPP 3. Relief ( 7 ) RESPONDENTS have failed to file affidavit by way of evidence. Petitioner has filed an affidavit of Shri Kumar Nagina, who is the sole proprietor of petitioner concern. In this affidavit, the allegations made in the petition have been supported. OPR 2. Whether the petitioner has made out any specific dispute in the petition ? OPP 3. Relief ( 7 ) RESPONDENTS have failed to file affidavit by way of evidence. Petitioner has filed an affidavit of Shri Kumar Nagina, who is the sole proprietor of petitioner concern. In this affidavit, the allegations made in the petition have been supported. ( 8 ) ARBITRATION clause 24 reads as under : "in the event of any question, dispute or difference arising under these conditions or any special conditions of contract, or in connection with this contract (except as to any matters the 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. It will be 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 in dispute or difference, The award of the arbitrator shall be final and binding on the parties to this contrect. " ( 9 ) PETITIONER has given material facts giving rise to the disputes and differences between the parties. These disputes and differences have been mentioned in para 12 of the petition. I am of the view that the disputes, as mentioned in the petition are covered by the arbitration clause. The existence of valid and subsisting arbitration agreement has not been denied by respondents. I hold that there exists a valid, legal and subsisting arbitration agreement between the parties and the disputes as mentioned in the petition are covered by the same. ( 10 ) PETITION is allowed. I direct respondents to file an arbitration agreement in Court. I further direct Director General of Supplies and Disposals, New Delhi to appoint a sole arbitrator in accordance with clause 24 within two months from today and refer the disputes, as mentioned in the petition to arbitrator. No order as to costs.