JUDGMENT :

VIBHU BAKHRU, J.

1. The petitioner has filed the present petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter the ‘A&C Act’) inter-alia, praying that an arbitrator be appointed to adjudicate the disputes that have arisen between the parties in connection with the agreement dated 21.11.2006 (hereinafter ‘the Agreement’) entered into by the petitioner with the respondent (hereinafter ‘SDMC’) for executing the works relating to “Improvement to Drainage System and Roads Ready Mix Concrete in Ward No. C-47 and 48 in the West Zone” falling under the Executive Engineer-XXIII, MC Primary School, 10 Block, Subhash Nagar, New Delhi-110027.

2. In terms of the Agreement, SDMC awarded the contract for execution of the works in question to the petitioner at a contract price of Rs. 25,30,28,517/- In terms of the tender conditions, SDMC called upon the petitioner to deposit the performance security in the form of a Bank Guarantee for an amount of Rs. 1,02,00,000/- which is equivalent to 5% of the contract price. The Agreement stipulated 06.12.2006 as the