Rajiv Sahai Endlaw, J.

1. The petition titled as one under Section 11(6)(c) of the Arbitration and Conciliation Act, 1996 has been filed on the averments that the disputes and differences had arisen between the petitioner and the respondent which were subject matter of arbitration as per Clause 23 of the agreement between the parties and which is as under:

23. In the event of any dispute or difference between the parties hereto, such dispute or difference shall be resolved by mutual consultation. If such resolution is not possible then the same shall be referred to the Chief Executive of Prasar Bharati whose decision shall be final.

2. It is further the case in the petition that the respondent Prasar Bharati vide letter dated 3rd March, 2003 to the petitioner invoked the aforesaid Clause 23 of the agreement between the parties. The said letter is as under:

Sub: Notice to invoke Clauses 23 of Memorandum of Agreements.

Dear Sir,

1. You as Producer for various sponsored serials/programmes including

(i) Music Station; (ii) Noorjehan; (iii) Jai Mata Ki and (iv) Kati Patang Hai Life Yaaron signed 4 separate Agreements dated 07.04.1999, 01.09.1999, 07.10.1999 and 27.09.2000 respectively (hereinafter referred to as the said Agreements) with yourself undertaking to abide by the terms and stipulations therein with relevant Clauses 11(ii) 11(iii) stating as follows:

a Clause 11(ii) - The Producer will ensure that its designated advertising agency files the sponsorship etc contract 48 (Forty eight) hours before the scheduled telecast of the concerned episode / part of the serial / programme within 45 (forty five) days counted from the first of the succeeding month following the date of the telecast of the said episode/part of the serial/programme.

c. Clause 11 (iii) - The Producer may file the contract himself by paying all the dues in advance or through a registered/accredited agency specifically designated for this purpose by the Producer. The Producer will obtain the prior approval in writing of DD before making any change of the designated agency.

2. M/s. Fame Communications, your Accredited Advertising Agent, filed contracts on your behalf in respect of the serials/programme aforesaid undertaking to pay to Doordarshan Commercial Service (Prasar Bharati Broadcasting Corporation of India) the bills according to the Rules framed and within the credit period fixed by the Doordarshan Commercial Service in this regard that is within 45 days from the first of the month following the date of telecast of advertisement and also would be liable to pay interest at 18% per annum on all amounts due to it which are not paid within the stipulated period vide Accredited Advertising Agency Agreement.

3. From time to time you telecast the aforesaid serials/programmes. You however failed and neglected to pay the contractual dues of Prasar Bharati (BCI) albeit repeated requests to do so.

4. In terms of the said Agreements there is now due and payable by you to Prasar Bharati (BCI) a sum of Rs. 13,31,44,135/-(Rupees Thirteen crores thirty one lakhs forty four thousand one hundred thirty five only) as on 31.08.2001 inclusive of interests @ 18% p.a. on the principal sum of Rs 11,36,96,005/- (Rs eleven crores thirty six lakhs ninety six thousand and five only). You were also liable to pay further interest on the principal sum of Rs. 11,36,96,005/- @ 18% p.a. till payment and realization. There is no disputes whatsoever regarding the above payments.

5. By notice dated 23.11.2001 our Advocate called upon you to pay the sum of Rs. 13,31,44,135/- (Rupees thirteen crores thirty one lakhs forty four hundred one hundred thirty five only) with further interest @ 18% p.a. on the principal sum of Rs 11,36,96,005/- (Rupees Eleven Crores thirty six lakhs ninety six thousand and five only) as stated which you failed to do so and instead by your Advocates letter dated 10.12.2001 raised pleas which were false and untenable in law.

6. Disputes and differences have