JUDGMENT

Kapadia, J.—Leave granted.

2. Two issues arise for determination in this civil appeal filed by Krishna Bhagya Jala Nigam Ltd. (for short, Jala Nigam) against the decision of the Division Bench of the Karnataka High Court dated 28.1.2005 in Miscellaneous First Appeal No.1785 of 2002 dismissing the said appeal preferred by Jala Nigam under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 (for short, the Arbitration Act).

3. The first issue is : whether Jala Nigam could be allowed to raise the contention, on the facts and circumstances of this case, that Clause 29 of the Contract (Agreement) is not an arbitration clause and due to want of jurisdiction of the arbitral tribunal to adjudicate upon the claims made by the contractor (respondent no.1), Award dated 25.6.2000 published on 14.11.2000 was a nullity.

4. The second issue is regarding the merits of the claims made by the contractor.

5. The facts giving rise to the above civil appeal are as follows.

6. On 27.11.93 Agreement bearing No.41/93 was entered into between Jala Nigam and the claimant (respondent no.1) concerning construction of Mulawad Lift Irrigation Scheme. The contract was for 36 months. It was to be c