JUDGMENT : This appeal is directed against an order dated 16.12.2010, by the District Judge, Sagar in MJC No. 67/2010, by which appellant's application under Section 9 of the Arbitration and Conciliation Act, 1996 was dismissed. Learned counsel for the appellant submitted that though the appellant was already ready and willing to perform the work under the contract but because of non-acquisition of the land or getting clearance from the forest department, the work could not be completed. The respondents extended the period of contract because of the aforesaid reasons twice and lastly the period was extended upto 30.06.2008, but further period was not extended, resulting termination of the contract. The petitioner completed rest of the work apart from the area, which could not be acquired or no objection certificate from the forest department could not be obtained by the respondent. It is submitted that the application filed by the appellant under Section 11 of the Arbitration and Conciliation Act, 1996 is pending before the High Court and till the matter is decided by the Arbitrator, such recovery may be stayed. Lastly it was submitted by Shri Shrivastava that appellant is ready to furnish bank guarantee of the remaining amount of the recovery and on terms the recovery may be stayed. Learned counsel appearing for the respondent opposed the aforesaid contention, but considering the fact that the appellant's application under Section 11 of the Arbitration and Conciliation Act, 1996 is pending before the High court, there appears to be a serious dispute between the parties in respect of non-completion of work because of the non-acquisition of the land or getting NOC from the forest department, on which the appellant was to construct the road, a prima facie case in favour of the appellant is made out. Apart from this, appellant has come forward to furnish bank guarantee for the amount in question. A.A. No. 01/2011. In the circumstances, we allow the appeal with the following directions :- (1) Appellant to furnish bank guarantee of Rs.1,02,03,422/- with the respondent within a period of two weeks from today. (2) On furnishing bank guarantee, the respondent shall not recover the aforesaid amount as shown in the letter dated 2.12.09, issued by the General Manager, Sagar Branch of respondent. In the circumstances, we allow the appeal with the following directions :- (1) Appellant to furnish bank guarantee of Rs.1,02,03,422/- with the respondent within a period of two weeks from today. (2) On furnishing bank guarantee, the respondent shall not recover the aforesaid amount as shown in the letter dated 2.12.09, issued by the General Manager, Sagar Branch of respondent. (3) The aforesaid bank guarantee shall remain in force till the decision by the Arbitrator, if appointed by the High Court under Section 11 of the Arbitration and Conciliation Act, 1996 and in case the aforesaid application is rejected or the Arbitrator decides the matter against the appellant, the respondent shall be entitled to enforce the bank guarantee. No order as to costs.