P. N. Nag,j. ( 1 ) THE plaintiff has filed this petition under Section 20 ofthe Arbitration Act of 1940 for directing defendant to file the arbitrationagreement in Court and also for reference to arbitration to settle the differences and disputes between the parties. The facts giving rise to the filingof this petition are that the plaintiff was awarded the work of sanitaryinstallation, external water supply and drainage and pumping equipmentwork by the defendants, for their staff housing and hostel complex at 8underhill Road, Delhi, vide their letter dated 14/11/1985. followed by a formal agreement dated 1/12/1986. The plaintiff vide itsletter dated 26. 8 85 submitted its tender to the defendant with certain clarifications. Thereafter the plaintiff has discussed with the defendant and thearchitect and after discussions the plaintiff agreed to amend certain clausesvide its letter dated 23. 9 85. It did not conclude there and thereafter furtherdiscussions were held between the plaintiff and defendant and when onlyfinally the defendant vide its letter dated 14. 11. 85 accepted the tender dated26. 8. 85 of the plaintiff. The aforementioned acceptance letter issued by thedefendant clearly superseded all previous correspondence including plaintiff sletter No. DSG/85-86/040 dated 23. 9. 85. The letter of 14/11/1985was followed by formal agreement dated 1/12/1986 and this letterof 14/11/1985 formed a part of the agreement. In the aforementioned letter dated 14/11/1985, there was a stipulation that thedate of commencement of work would be 23/11/1985 and timeallowed for carrying out the work was four months. Although according tothe petitioner the work was to be completed within four months, but evenafter twenty four months have passed by, since the stipulated period of completion the work entrusted to him is still incomplete, due to acts of prevention, omission and commission on the past of the defendants and the plaintiffhas raised claim of Rs. 18,98,569. 90 the details of which have been given inpara 10 of the petition. In accordance with the arbitration clause, theplaintiff approached the Architects in the first instance before initiating forinvoking the formal arbitration proceedings but there was no response. Afterarchitects refusal to settle the claims, the claims are required to be referredto the arbitration in accordance with the arbitration agreement between theparties. ( 2 ) THE stand taken by the defendant is that there is no cause ofaction in favour of the plaintiff to file the present petition against the defendants. Afterarchitects refusal to settle the claims, the claims are required to be referredto the arbitration in accordance with the arbitration agreement between theparties. ( 2 ) THE stand taken by the defendant is that there is no cause ofaction in favour of the plaintiff to file the present petition against the defendants. as the alleged claims made by the plaintiff are not borne out of thecontracrand have been excluded from the ambit of the agreement enteredinto between the parties, and as such the petition under Section 20 ofarbitration Act, as framed, is not maintainable. The case set up by theplaintiff has been denied by the defendant and it is stated in para 7 of thewritten statement that under the terms and conditions of the contract, videits letter dated 23. 9. 85 the plaintiff had specifically agreed that it shall notcharge any extra labour item elements and if the work continues beyond thestipulated date of completion due to any reason, the plaintiff shall not beentitled to any market or statutory increase in the material and labour. Itwas specifically made clear that the plaintiff shall not be entitled to any suchescalations. They have also relied upon clauses 17 and 18 of the Conditionsof tender which form a part of the agreement according to which the plaintiffis not entitled to claim any compensation for delayed execution of such work,whatsoever the cause of delay may be, and the rates payable shall be firm,and not be subject of variations, labour condition or any other condition. ( 3 ) THE following only one Issue was framed :- "whether the disputes raised in para 10 of the petition are coveredunder the arbitration agreement ?". ( 4 ) The learned counsel for the defendant during the course of thearguments vehementally argued that under the terms and conditions of thecontract/vide its letter dated 23. 9. 85 the plaintiff has specifically agreed thatit shall not charge extra labour as claimed in the original letter dated 26. 885wherein a clause was contemplated to the effect that if the work continuesbeyond stipulated date of completion due to any reasons, they shall bepaid market/statutory increases in materials and labour and which form asubject matter of the contract and it does not lie in the mouth of the plaintiffto say that he is entitled to charge increase in material and labour. Thissubmission is factually incorrect and devoid of any truth. Thissubmission is factually incorrect and devoid of any truth. It is no doubttrue that by clause 4 of letter dated 23. 9. 85 the plaintiff is not entitled to bepaid market/statutory increases in materials and labour but this clause bysubsequent letter No. 1nd/87/f dated 14. 11. 85 was superseded, as letterdated 14. 11. 85 clearly supersedes the earlier letter dated 23. 9. 85 where theaforementioned clause contained in letter dated 26. 8. 85 was withdrawn. Infact this letter of 14. 11. 85 is a part of the agreement as would be seen fromthe terms of the agreement and not letter dated 23. 985. Therefore theplaintiff cannot said to have agreed that he shall not be entitled to additionalprice of labour and escalation charges. ( 5 ) LEARNED counsel for the defendant further relied upon clause 17and18 of the agreement which stipulates that the contractor shall not be entitledto claim any compensation for any less suffered by him on account of thedelay in commencing or executing the work whatsoever the cause of suchdelay may be including the delay in procurement of any of the buildingmaterials including cement and steel and the rates payable shall be firm andnot subject of variations labour conditions or any other condition and, therefore, under the arbitration clause such matters cannot be referred to thearbitrator. ( 6 ) IN order to appreciate this contention, it would be necessary toreproduce clause 36 of the Arbitration clauses :- "settlement of disputs, arbitration :all disputes and differences of any kind whatever arising out of or inconnection with the Contract or the carrying out of the works (whether during the progress of the works or after their comoletionand whether before or after the determination, abandonment orbreach of the contract) shall be referred to any settled by thearchitect who shall ^atehis decision in writing. Such decision maybe in the form of a Final Certificate or otherwise. Such decision maybe in the form of a Final Certificate or otherwise. The decision ofthe Architect with respect to any of the excepted matters shall befinal and without Appeal as stated in the proceedings clause Butif either the Employer or the Contractor be dissatisfied with thedecision of the Architect on any matter, question or dispute of anykind (except any of the excepted matters) or as to the withholding by the Architect of any Certificate to which the Contractor mayclaim to be entitled, then and in any such case either party (theemployer or the Contractor) may within 28 days after receivingnotice of such decision give a written notice to the other partythrough the Architect requiring that such matters in dispute bearbitrated upon. Such written notice shall specify the matters whichare in dispute and such dispute or difference of which such writtennotice has been given and no other shall be and is hereby referredto the Arbitration and final decision of a single Arbitrator beinga Fellow of the Indian Institute of Architects to be agreed uponand appointed by both the parties or in case of disagreement as tothe appointment of a single Arbitrator, to the Arbitration of twoarbitrators both being Fellow of the Indian Institute of Architects,one to be appointed by each party, which the Arbitrator shallbefore taking upon themselves the burden of reference appointan Umpire. The Arbitrator, the Arbitrators or the Umpire shall havepower to open up, review and revise any Certificate, opinion,decision, requisition or notice, save in regard to the exceptedmatters referred toin the preceding Clause, and to determine allmatters in dispute which shall be submitted to him or them and ofwhich notice shall have been given as aforesaid. Upon every or any such reference the cost of and incidental tothe reference and award respectively shall be in the direction of thearbitrator or Arbitrators or the Umpire who may determine theamount thereof or direct the same to be taxed as between attorneysand client or as between party and party, and shall direct by whomand to whom and in what manner the same shall be borne andpaid. This submission shall be deemed to be a submission toarbitration within the meaning of the Indian Arbitration Act 1899or any statutory modification thereof. The Award of the Arbitratoror Arbitrator: or the Umpire shall be final and binding on theparties. This submission shall be deemed to be a submission toarbitration within the meaning of the Indian Arbitration Act 1899or any statutory modification thereof. The Award of the Arbitratoror Arbitrator: or the Umpire shall be final and binding on theparties. Such reference except as to the withholding by thearchitect of any Certificates under Clause 33 to which the Contractor claims to be entitled shall not be opened or entered upon untilthe completion or alleged completion of the works or until afterthe practical cessation of the works arising from any cause unlesswith the written consent of the Employer and the Contractor. Provided always that the Employer shall not withhold the paymentof an Interim Certificate, nor the Contractor, except with theconsent in writing of the Architect, in any way delay the carryingout of the works by reason of any such matter, question or disputebeing referred to Arbitration, but shall proceed with the work withall due diligence and shall, until the decision of the Arbitrator, orarbitrators or the Umpire to be given, abide by the decision of thearchitect and no Award of the Arbitrator or the Arbitrators or theumpire shall relieve the Contractor of his obligations to adherestrictly to the Architect s instructions with regard to the actual carrying out of the works. The Employer and the Contractor hereby alsoagree that Arbitration under this clause shall be a condition precedent to any right of action under the Contract. "the above contention is wholly untenable in the eyes of law as arbitrationclause is all comprehensive and embracing all disputes and differences ofany kind whatsoever arising out of or in connection with the contract orcarrying out of the works etc. are covered by such clause and is not subjectto other provisions as contained in other clauses of the agreement and noexceptions have been provided otherwise. ( 7 ) THE perusal of the arbitration clause would reveal that in suchfacts and ciseumstances clauses 17 and 18 of the agreement aforementionedcannot stand in the way of referring the dispute to the Arbitrator. ( 8 ) THE next question arises for consideration whether or not thepresent dispute as raised by the plaintiff in paragraph 10 is covered underclause 36 of the Arbitration clauses. It goes without saying that the plaintiffhas raised a claim of Rs. 18,98. 569. ( 8 ) THE next question arises for consideration whether or not thepresent dispute as raised by the plaintiff in paragraph 10 is covered underclause 36 of the Arbitration clauses. It goes without saying that the plaintiffhas raised a claim of Rs. 18,98. 569. 90 due to delayed execution of the workdue to acts of prevention, omission and commission on the part of thedefendant and such execution of work is covered under the terms of thecontract and there can further possibly be no dispute that this dispute is inconnection with the contract or carrying out the works of the contract. It is no doubt true that the defendant has relied upon clause 6 of letter dated14. 11. 85 wherein it is stated that the work. should be completed in fourmonths or it should bs consistent with the completion of the buildingwork, as such the plaintiff is not entitled to escalation charges. This itselfraises the dispute and interpretation of agreement which is for the Arbitratorto decide. ( 9 ) IT is settled principle of law that in order to deal with a petitionunder Section 20. it is necessary that there should be arbitration agreementand secondly difference and disputes must have arisen to which this agreement applied. In the light of what I have discussed above there cannot beany doubt that there is a subsisting agreement and secondly there is anassertion of claim by the appellant and silence as well as refusal of the sameby the defendant. Therefore, a dispute has arisen regarding the alleged duesof the petitioners. In the circumstances the plaintiff is entitled to referenceunder Section 20 of the Arbitration Act in accordance with clause 36 of theagreement. ( 10 ) IN the result I hereby direct the defendant to file the arbitrationagreement in Court and appoint an Arbitrator in accordance with clause 36of the Arbitrator Agreement to settle and adjudicate the differences anddisputes between the panics. S. No. 1141a/88 stands disposed of. Therewill be no order as to costs,