Koshy, J.

The appellant, a private limited company having its registered office at Alleppey entered into an agreement with the respondent. In the agreement there is a clause for arbitration. Clause XVII of the agreement reads as follows:

"XVII. ARBITRATION AND JURISDICTION

a. If any dispute or difference arises between the Parties hereto as to the construction, interpretation, effect and implication of any provision of this Agreement including the rights or liabilities or any claim or demand of any Party against other or in regard to any matter under these presents but excluding any matters, decisions of determination of which is expressly provided for in this Agreement, such disputes or differences shall he referred to the sole arbitration of the Secretary of the Department of Science & Technology, Government of India, or that of his nominee and his decision will be final and shall be binding on all the parties. A reference to the arbitration under this clause shall be deemed to be submission within the meaning of the Arbitration Act, 1940 and the rules framed thereunder for the time being in force.

b. If the 'COMPANY' does not make any claim or demand or raise any dispute