SANJAY KISHAN KAUL, J.

( 1 ) THE petitioner filed an application under Section 8 of the Arbitration and conciliation Act, 1996 (hereinafter referred to as the said Act) against the present respondent as respondent no. 1 and M/s Prime International, a partnership firm, as respondent no. 2. The petition states that the petitioner is manufacturer/ exporter of high quality of Indian sweets, salty and spicy mixture and pure Asian vegetarian food snacks commanding good reputation. The petitioner is a unit of the Haldiram Group of Companies enaged in the business of financing and exports. The original second respondent is stated to be the sole distributor appointed for distribution of goods manufactured by the petitioner in Saudi Arabia.

( 2 ) THE petition states that an agreement dated 19. 6. 1997 was entered into between the petitioner, the respondent and the original respondent no. 2 for exclusive marketing and distribution of 'haldiram' brand of snacks and food in Saudi arabia. The said agreement contains an arbitration clause 20 providing for arbitration as a mode of settlement of disputes. Clause 20 is as under: "arbitration: As applicable for international business. "

( 3 ) THE r