This appeal filed under Section 37 of the Arbitration and Conciliation Act, 1940 (Arbitration Act) is directed against the order dated 27.09.2009, passed in Civil Suit No. 29-B/2002, passed by 1st Additional Judge to the Court of 1st Upper District Judge, Sidhi.

2. Briefly stated, the facts are that the respondent was awarded contract for construction of 100 ‘B Type Quarters’ at Bina and an agreement in this regard was entered into between the parties on 11.01.1986. The schedule date for completion of work was 11.03.1987. On 01.10.1992 the Chief Engineer ordered to stop payment and directed that all payments to be kept in abeyance. The respondent issued a notice under Clause 9 of the Agreement (Terms and Conditions) to appoint an arbitrator in respect of Bina Project only by showing the outstanding amount as Rs.2,23,215/-. This amount was shown as outstanding since 13.03.1988. The notice was issued on 08.12.1992. The appellant by reply dated 15.12.1992 rejected the claim of the respondent. The respondent raised a bill of Rs.2,35,215/- and then filed an application un