A.N.Grover, J.

1. This is an appeal against an order of the Senior Sub-Judge, Simla, refusing to stay a suit under the provisions of Section 34 of the Indian Arbitration Act.

2. The suit was filed by Jawahar Mal and Sons for recovery of Rs. 68,349/5/3 against the Punjab State for damages for breach of a contract which had been entered into for erection of a high level bridge over the Rangeelpur Naddi. The State moved the Court under the provisions of Section 34 of the Arbitration Act for stay of proceedings on the ground that there was an arbitration clause in the agreement and that the disputes between the parties had to be decided by arbitration. Various pleas were raised on which the following issues were framed :

1. Whether there is any valid agreement between the parties to refer the disputes arising between them to arbitration?

2. Whether Shri Walaya Ram was competent to enter into the said agreement on behalf of the plaintiff firm?

3. Has the Superintending Engineer, Ambala Circle, debarred himself from acting as an arbitrator by his conduct?

4. Relief.

It has been held by the Court on issue No. 1 that clause 25-A which related to the arbitration agreement had not be