ORDER

1. This appeal is filed against the order passed by the High Court in an application under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996 (for short the ‘Act’) directing that the matter be referred to arbitration by a former Judge of the Andhra Pradesh High Court. The respondent moved the aforesaid application on the basis that it is a partnership firm, carrying on business of civil works relating to irrigation structures. The Irrigation Department of Government of Andhra Pradesh had given the work to the appellant herein. Thus, the appellant was the main contractor and respondent was the sub-contractor working under the appellant.

2. The works involved earth work excavation and cohesive non-swelling soil filling in KC Canal including CC lining and structures form KMs 156.650 to KMs 170-00 of Package ICB-10’ in Kurnool District of Andhra Pradesh. The appellant identified the respondent as a suitable agency for execution of the work and entrusted the work to the respondent as a sub-contractor. After due negotiations, an agreement dated 29.1.2001 was entered into between the parties. The agreement inter alia provides various terms and conditions including t