JUDGMENT

R.V. Raveendran, J.—

Leave granted. Heard learned counsel for both parties. The matter relates to interpretation of sub-section (5) of section 7 of Arbitration and Conciliation Act, 1996 (‘Act’ for short) and the issue involved is whether an arbitration clause contained in a main contract, would stand incorporated by reference, in a sub-contract, where the sub-contract provided that it “shall be carried out on the terms and conditions as applicable to the main contract.”

2. The Public Works Department, Government of Kerala, (in short ‘PW Department’) entrusted the work of “Four Laning and Strengthening of Alwaye - Vyttila and Aroor - Cherthala and Strengthening of Vyttila to Aroor Section of NH 47 - N2 & N3 packages” which included the work of “Construction of Project Directorate Building for National Highway Four Laning Project at Edapally, Cochin” to the respondent. The said contract between PW Department and the respondent contained a provision for arbitration, as per clause 67.3 of the General Conditions of Contract. The relevant portion of the said clause is extracted below:

“Arbitration 67.3.

Any dispute in respect of which :

(a) the decision, if any, of the Engineer