A party seeking a stay of a suit under Section 34 of the Arbitration Act, 1940 must satisfy the court that there is a valid and enforceable arbitration agreement between the parties, that the disputes raised in the suit are covered by the arbitration agreement, that the party applying for the stay is ready and willing to arbitrate the disputes, and that there is no sufficient reason why the matter should not be referred to arbitration.

PRABIR KUMAR MAJUMDAR, J. :-­ This appeal is against the judgment and order dated 10th September, 1984 passed by a learned single Judge of this Court staying the Suit No. 697 of 1983 of the appellant under S. 34 of the Arbitration Act, 1940.

2. The suit was filed on the basis of several contracts entered into between the plaintiff and defendant. The appellant/plaintiff had filed a suit against the defendant for price of goods sold and delivered.

3. The respondent made an application under S. 34 of the Arbitration Act, 1940 for staying of the suit filed by the plaintiff/appellant, inter alia, contending that each of the contracts on the basis of which the suit has been filed contained an arbitration clause and such arbitration agreement covered the sub­ject matter of the suit. It was contended on behalf of the respondent before the Trial Court that each of the said contracts provided that the Project Engineer, special Project Circle, Coimbatore shall be the Arbitrator for any dispute arising out of the transaction. The appellant, however, submitted before the Trial Court that none of the said eight contracts being the subject matter of the suit contained any arbitration clause and in any event the arbitration agreement, if any, did not cover the subject matter of the suit.

4. The first point urged by the appellant in this appeal was that there was no arbitra­tion agreement between the parties in pursuance of which the matter could be referred to arbitration. According to the appellant, as also has been urged before the Trial Court, purchase orders in the eight different con­tracts being the subject matter of the suit do not contain any arbitration agreement and hence the disputes between the parties are not covered by any arbitration agreement and as such there is no ground for stay of the suit under S. 34 of the Arbitration Act, 1940.

5. It appears from the facts of the case that the disputes between the parties arose out of eight contracts in respect of each of which a purchase order was issued. In respect of five of such contracts formal agreements were signed and executed by and between the parties and for the rest of the contracts, namely, in respect of three contracts, no formal agreement was signed. All the con­tracts between the parties were evidenced by document constituting Tender Notice, Ten­der, Special Conditions of Contracts, letter of Acceptance, and in respect of five of the said contracts, the Articles of Agreement. It is submitted by the respondent that the appel­lant submitted its tender enclosing therewith the documents which are at pages 20 to 36 of the paper book. The respondent submits that in other words the conditions contained in the Tender notice, the Tender and Special Condi­tions of contract from part of the offer of the appellant. It appears to us that this is borne out from the fact that each of the documents mentioned above is signed by or on behalf of the appellant and signature of one of its partner appearing at the bottom of each page of the document. It is submitted by the respondent that the aforesaid offer of the appellant was accepted by and on behalf of the respondent by its letter of acceptance which is at page 33 of the Additional paper book.

The relevant arbitration clause is as follows :

"Arbitration : In case of any dispute or difference between the parties to the contract either during the progress or after the comple­tion of the works or after the determination, abandonment or breach of the contract as to the interpretation of the contract as to any matter or thing arising thereunder except as to the matters left to the sole discretion of the Executive Engineer under Clauses 20, 22, 27(c), 29, 36, 27 and 40 of the Preliminary Specification, or as to the with helding by the Executive Engineer of payment of any bill to which the contract may claim to be entitled, then either party shall forthwith give to the other notice of such dispute or difference and such dispute or differenc