Hemant Gupta, J.

1. The present case has chequered history. One Industrial Plot No. 121, in Industrial Estate, Dundahera (now Udyog Vihar), Phase-I, Gurgaon was allotted to the petitioner on 21.7.1977. An agreement was executed between the petitioner and Haryana State Industrial Development Corporation-Respondent No. 1 on 20.10.1977. In terms of the agreement, the petitioner was to complete the construction within 2 years and to commence production within a period of 3 years from the date of the allotment of the plot. Said agreement also contained an arbitration clause. As per the said clause any disputes or differences arising out of or in any way touching or concerning the agreement were required to be referred to the sole arbitration of the nominee of Secretary to Government of Haryana, Industrial Department.

2. The allotment in favour of the petitioner was cancelled on 23.6.1981 and the plot resumed. Soon after the resumption the plot was re-allotted to Respondent No. 2 on 15.12.1981.

3. The petitioner herein filed a Civil Suit challenging the said resumption order. An application was filed by respondent No. 1 herein under Section 34 of the Arbitration Act, 1940 (for sh