JUDGMENT :

1. Heard Sh. Anil Mahajan, learned counsel for the petitioner and Sh. Vishal Sharma, learned Assistant Solicitor General of India appearing for the respondents.

2. The petitioner is a proprietorship firm engaged in the contract business. It was awarded a contract on 22.03.2006 for a total amount of Rs. 26,50,442.82 which was to be completed by 30.09.2006. The said contract provided for the resolution of the disputes inter se the parties by means of arbitration and that the award has to be made within a maximum period of one year from the date of entry into arbitration.

3. Condition No. 70 of IAFW 2249 of the Contract providing for referring the dispute to the arbitrator is reproduced hereunder:-

"70. Arbitration.- All disputes, between the parties to the Contract (other than those for which the decision of the C.W.E. or any other person is by the Contract expressed to be final and binding) shall, after written notice by either party to the Contract to the other of them, be referred to the sole arbitration of an Engineer Officer to be appointed by the authority mentioned in the tender documents.

Unless both parties agree in writing such reference shall not take place until aft