The substantial issue for determination in this originating summons is the right of a claimant to declaratory relief to refer a dispute arising from an arbitration agreement to arbitration. All references to exhibits in this judgment shall be references to exhibits annexed to the affidavit accompanying the application of the Plaintiff The Arbitration Act 1952 shall hereafter be referred to as "the Act".

On 12 August 1996 the Plaintiff and the Defendant entered into an agreement ("the agreement") for the construction of a golf course. The agreement contained provisions for arbitration and its termination. The relevant clauses are as follows:

ARBITRATION

"14. If any dispute or difference shall arise between the parties hereto touching any cause matter or thing herein contained or the operation or construction thereof or any matter or thing in any way connected with this Agreement or the rights duties or liabilities of either party under or in connection with this Agreement then and in every such case the dispute or difference shall be referred to a single arbitrator if the parties agree upon one or otherwise to two arbitrators one to be appointed by each party and in either case in accordance with and subject to the provisions of the Malaysian Arbitration Act 1952 or any statutory modification or re-enactment thereof for the time being in force and such arbitration shall be held in Kuala Lumpur or in such other place as the parties shall mutually agree.

TERMINATION

15. Notwithstanding any provision to the contrary anywhere set out in this Agreement hereof in the event the Contractor shall:-

a) breach any condition or commit any default of any provisions of this Agreement;

b) fail to comply with written instructions of the Employer after several warning

c) suffer or allow a petition for winding up to be presented against the Contractor;

d) fail to complete the works in accordance with the First Working Programme Schedule and/or Second Working Programme Schedule and/or Third Working Programme Schedule as set out in the Second Schedule; then and in any such event the Employer shall be entitled to terminate this Agreement and engage new contractors to complete the contract works still outstanding. All cost incurred as a result of the Employer having to engage new contractors to complete the contract works shall be borne by the Contractor.

By letter dated 21 November 1996 (Exhibit B) the Defendant gave the Plaintiff notice of termination of the agreement The material parts of the letter read as follows:

"RE: TERMINATION OF THE AGREEMENT DATED 12TH AUGUST 1996

BETWEEN ORNACONSTRUCTION CORPORATION SDN.BHD AND YIP CHEE SENG & SONS SDN BHD FOR THE CONSTRUCTION AND COMPLETION OF THE PROPOSED 27 HOLES GOLF COURSE AT GAPAM MELAKA FOR ORNARESORT BERHAD

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We refer to the above matter and the inspection held on 16th November 1996 wherein you have been informed that the hand-over of Hole 10 to 18 of Ornaresort Golf Course has been rejected for reasons as stated in our list of defective and incompleted work.

We note with that you have failed to comply with our written instructions after several warnings and failed to complete the works in accordance with the First Working Programme Schedule as set out in the Second Schedule of the above agreement.

We hereby give you NOTICE that the above agreement is to be terminated with immediate effect and you are to have all your equipment, plant and tools removed from the construction site within SEVEN (7) DAYS from the date of the notice, failing which we shall not be responsible for any loss or damage to your equipment, plant and tools.

Further, you are to get all your workers and personnel out of the construction site failing which they will be deemed as trespassers and we shall not be responsible for any injuries to their persons"

The Plaintiff accepted the repudiation of the agreeme