Judgment

SABYASACHI MUKHARJI, J. :- Special leave granted. The appeal is disposed of by the judgment hereunder.

2. It appears that on or about 18th September, 1969, four agreements were entered into between M/s. L. K. Ahuja & Co. and Union of India represented by the Executive Engineer, Northern Railway, Allahabad, for the construction of certain quarters. It was followed by supplementary agreement entered into sometime in 1972. It is stated that all the four contracts were executed and completed by the first respondent on diverse dates. The last one was on 30th May, 1971. Between 29th May, 1972 to 19th June, 1972, the respondent accepted the four final bills and gave no claim declaration in respect of the four contracts. The respondent wrote a letter to the Additional Chief Engineer, R.E.N.R. Allahabad, stating that Rs. 1,91,137/- were due on account of the work executed and requested him to refer the dispute to the Arbitrator. On 4th June, 1976 a reply was sent to the above letter stating that there was no dispute between the parties and, hence, no question of appointment of any Arbitrator arose. On 13th December, 1976, an application was filed by the respondent in the Court of Civ