JUDGMENT

Tarun Chatterjje, J. —

1. The appellant, State of Rajasthan, invited tenders for construction of Bhimsagar Dam in which one of the tenderer was the respondent. The tender of the respondent was accepted. Accordingly, a contract was awarded to the respondent and under the contract the work was to be started on 16th of November, 1978 and the date of completion was fixed on 15th of May, 1981. One of the terms of the contract was that if any difference or dispute arises between the parties, such dispute or difference shall be referred to arbitration. However, the work was not completed within the time allotted and time was thereafter extended. Inspite of extension of time, the work was not completed. For that reason, the State of Rajasthan terminated the contract and got the remaining work done from some other contractor.

2. The respondent raised various claims which were rejected by the State of Rajasthan. The respondent, therefore, moved an application under Section 20 of the Arbitration Act, 1940 (in short the ‘Act’) for referring the claims mentioned therein to arbitration. The District Judge, Jhalawar by an order dated 11th of November, 1982 held that only one claim was re