Honble LAKSHMANAN, CJ.–The above application was filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for short the Act), for appointment of an Arbitrator.

(2). The applicant is a partnership firm having its principal place of business at Bharatpur. The applicant entered into a contract with the non - applicant No. 1 State for construction of road from Jhalera to Alipura in Hindaun Division under the Contract No. 167/95-96 and the estimated cost of construction was Rs. 12,89,852/-. A copy of the Agreement has been filed and marked as Annex. 1. According to the applicant, the firm started the work under the contract aforesaid and the work even continued beyond the originally agreed period for the reason attributable to the State and for the reasons beyond the control of the applicant. The period for completion of work was extended upto 12.12.97. The applicant submitted the final bill to the non- applicant in the sum of Rs. 11,00,156/- vide letter dated, 17.4.1998. Despite reminders, the payment was not made. Invoking Clause 23 of the agreement, the applicant firm served a notice dated. 10.5.2000 on the State and requested for referring the dispute to the High Power Standing Committee within a period of one month from the date of receipt of the application, but it was not done so.

(3). Clause-23 of the Agreement is reproduced herein below for ready reference:

``Clause-23: If any question, difference or objection whatsoever shall, arise in any way in connection with or arising out of this instrument of the meaning of operation of any part thereof or the rights, duties or liabilities of either party, then save in so far as the decision of any such matter as hereinbefore provided for and been so decided, every such matter constituting a total claim of Rs. 50,000/- or above, whether its decision has been otherwise provided for and whether it has been finally decided accordingly, or whether the contract should be terminated or has been rightly terminated and as regards the rights or obligations of the parties as the result of such termination shall be referred for decision to the empowered Standing Committee which would consist of the following:

1. Administrative Secretary concerned,

2. Finance Secretary or his nominee not below the rank of Deputy Secretary.

3. Law Secretary or his nominee not below the rank of Joint L.R.

4. Chief Engineer-cum-Addl. Secretary of the concerned Department.

5. Chief Engineer concerned (Member Secretary).

The Engineer Incharge, on receipt of application alongwith prescribed fee from the contractor shall refer the dispute to the Committee within a period of one month from the date of receipt of the application. The State failed to refer the dispute to the Committee as per Clause - 23, the applicant was compelled to make an application u/Sec. 10 and 11 of the Act before the District Judge, Karauli. The District Judge, by order dated 27.11.2000 directed the State to refer the matter to the Standing Committee within the period stipulated in the order. It was directed that the Secretary,P.W.D., Government of Rajasthan, shall within two months from the date of order, call upon the applicant firm for appearance before the Standing Committee. The period of two months came to an end on 27.1.2001. The applicant on expiry of the period stipulated in the order dated, 27.11.2000, made another application u/SS. 10 and 11 of the Act for appointment of an Arbitrator before the District Judge in Civil Miscellaneous Case No. 8/2001. Notices were issued to the non- applicant of the said application, but before the said application could be disposed of, the amendment in the scheme of 1996 came into effect from 12.2.2001 and for the subject matter of the dispute being of the value of more than Rs. 5 lacs,the District Judge being no more competent to entertain the application, by order dated, 20.03.2001, directed for return of the application to the applicant for filing before the proper forum.

(4). In the circumstance

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