The main legal point established in the judgment is that the validity and enforceability of an arbitration clause should be determined based on whether the parties have entered into an arbitration agreement and whether there is sufficient ground for not referring the matter for arbitration.

( 1 ) THIS is a petition under Section 20 of the Arbitration Actrequiring the filing of the agreement in Court and for appointment of arbitrator inaccordance with the terms of the arbitration clause and for reference of disputesraised in the petition to the Arbitrator for deciding the same in accordance withlaw.

( 2 ). There has been a contract between the parties which contains an arbitration clause to the following effect.

"all disputes and differences of any kind whatever arising out of or inconnection with the conduct of the carrying out of the works (whether duringthe progress of the works or after their completion, and whether before orafter the determination, abandonment or breach of the contract) shall bereferred TO to and settled by the architects who shall state their decision inwriting. Such decision may be in the form of a final certificate or otherwise. The decision of the Architect with respect to any of the excepted matters shallbe final and without Appeal as stated in Clause No. 33. But if either theemployer or the Contractor be dissatisfied with the decision of the Architector any matter, question or the dispute of any kind (except any of the exceptedmatters) or as to the withholding by the Architect of any certificate to whichthe contractors may claim to be entitled, then and in any such case either party (the Employer or the Contractors) may within 28 days after receiving noticeto such decision give a written notice to the other party through the Architectsrequiring that such matters in dispute be arbitrated upon. Such written noticeshall specify the matters which are in dispute and such dispute or differenceof which such written notice has been given and no other shall be and is herebyreferred TO to the arbitration and final decision of a single arbitrator being afellow of the Indian Institute of Architects to be agreed upon and appointedby both the parties or in case of disagreement to the appointment of a singlearbitrator, to the arbitration of two Arbitrators being both Fellow of the Indianinstitute of Engineers of equivalent one to be appointed by each party, whicharbitrators shall before taking themselves the burden of reference appointan Umpire. "

( 3 ). This petition is contested by the respondent on the sole ground that thepetitioner has not invoked the arbitration clause in accordance with the terms of thesaid clause and thus the petition is not maintainable. It is pointed out that thearbitration clause contemplates that petitioner has to give a notice in writing inwhich the disputes sought to be raised for arbitration were to be detailed out andsuch a notice was to be given through the architect to the respondent and this stephas not been taken by the petitioner, thus the arbitration clause cannot be invokedby filing a petition under Section 20.

( 4 ). Similar arbitration clause came up for consideration before this Court inthe case of Mis. Sikand Construction Co. v. State Bank of India, ILR (1979) I Delhi364. The Court held that writing a letter to the architect is directory provision inan arbitration clause and in the said case despite no such letter being written by theparty for invoking the arbitration clause in the manner contemplated in thearbitration clause, still the Court held that in view of the provisions of Section 20of the Arbiration Act what the Court has to consider is whether the parties haveentered into an arbitration agreement and if so, whether there is any sufficientground for not referring the matter for arbitration and if it is proved that thereis an agreement for arbitration then the Court has to direct the filing of thearbitration agreement and appoint the arbitrator in accordance with the arbitrationclause.

( 5 ). In that case also the directions were given to the parties to appoint anarbitrator in consonance with the arbitration clause. In the present case, admittedly,the contract out of which the disputes arise contains the arbitration clause and thusi hold that