ORDER

The appellant herein issued an advertisement inviting tenders for the works, namely, construction of Radiotherapy Mortuary workers facility, pump house and guard room. Respondent No. 1 herein responded to the said advertisement and submitted his tender, which was accepted by the appellant herein. An agreement was entered into between the parties on 14.12.79. The agreement contained an arbitration clause. It appears that the respondent was able to complete the construction by November, 1983. Under such circumstances, he gave an application to the Chief Engineer wherein it was submitted that the escalation of 42% has not been paid in respect of certain items of which escalation is provided under the principal agreement. However, the Chief Engineer informed the respondent that the escalation was applicable to all the items as per the decision of the standing Finance committee. On 4.4.1981 the respondent filed a petition in the High Court of Jammu and Kashmir seeking the mandamus that the appellant be directed to pay 42% escalation rates as approved under the supplementary agreement and confirmed by the letter dated 5.5.1986 of the Chief Engineer.

2. The learned Single Judge of th