( 1 ) AN abortive application for stay under S. 34 of the Arbitration Act is the genesis of the instant appeal by the defendants.

( 2 ) THE defendant No. 1 the West Bengal Comprehensive Area Development Corporation, a statutory body (hereinafter referred to as the Corporation) invited tenders for construction of "field channel" at village Upar-Gugui and Mahultaur I and II in the district of Purulia against a tender notice dated February 29, 1981. The plaintiff, Sasanka Sekhar Banerjee (respondent), a contractor, submitted a tender with all formalities which was ultimately accepted by the defendant No. 1. A printed contract form was executed by and between the plaintiff and the defendant No. 1 on the 1st day of June, 1981.

( 3 ) CLAUSE 25 in the said printed agreement provides for settlement of all disputes arising out of the contract by referring the same to the sole arbitration of the Executive Vice-Chairman of the Corporation or to an Arbitrator to be appointed by him if he is unable or unwilling to act.

( 4 ) A dispute having arisen between the parties over execution of the contract and consequent alleged non-payment of the final bill of the plaintiff a