S.K. Jain, J. - A contract was entered into between the petitioner and the respondents with regard to the execution of the earth work in filing formation with contractor's own earth from K.M. 14.807 to K.M. 18.664 on Sirhind-Nangal Dam Section of Northern Railway, in connection with S.Y.L. Canal crossing. The disputes having arisen between the parties, the petitioner vide his letter dated 13.11.1987, requested the General Manager, the designated authority under the general conditions of the Contract, to consider his claim within a period of 90 days or in the alternative after the expiry of the said period to take action in terms of Clause 64 of the General Conditions for arbitration. The disputes raised by the petitioner have been detailed in para No. 1 of the impugned order. When in spite of the expiry of 90 days, the second respondent did not take any action, the petitioner filed an application under Sections 5, 8, 11, 12, 20 and 33 of the Indian Arbitration Act, 1932, in the Court of Shri M.L. Malhotra, Sub Judge, Ist Class, Ropar. 2. The respondents contested the petition inter alia on the ground that the petition was not maintainable and that the matters which have been claimed to be disputed, do not fall within arbitration clause 64 of the General Conditions of the contract and were rather "excepted matters" and, therefore, the same could not be referred to the Arbitrator. The learned trial Court framed the following issues :- 1. Whether disputes have arisen between the parties which are referable to an Arbitrator? OPA 2. Whether the authority of respondent No. 2 to act an Arbitrator is liable to be revoked as alleged ? OPA 3. Whether the application is not maintainable ? OPR 4. Relief. 3. The trial Court decided issue Nos. 1 to 3 which are relevant for the decision of this case, together and held that the disputes in the application were not referable to the Arbitrator and that the reference made by the petitioner to respondent No. 2 for his decision on these matters could not be deemed to be a reference to the Arbitrator so that the petition for revocation and revocation of his authority could not be held as maintainable. Resultantly, vide his judgment dated 25.3.1991, the trial Court dismissed the application. 4. Feeling aggrieved, the petitioner has brought this petition. 5. I have heard the learned counsel for the parties at length. 6. The learned counsel for the petitioner has vehemently argued that the trial Court had no jurisdiction to go into the question as to whether the items of the claim of the petitioner contained 'excepted matters' or not. He had simply to refer the matter to the Arbitrator and it was for the Arbitrator to consider as to whether the claim of the petitioner comprises of 'exceptedmatters' and was not covered by arbitration clause. 7. As against that, the learned counsel appearing for the respondents urged supporting the judgment passed by the Court below. 8. The sole point, therefore, that arises for consideration in this case is, 'whether the Court below was justified in holding that the dispute was not arbitrable ?' 9. It is not disputed that the contract was governed by an arbitration clause under which the General Manager of the Northern Railway is made competent to appoint an Arbitrator to adjudicate upon the disputes and difference arising under the contract to arbitration. 10. It is also disputed that the General Conditions of Contract Regulations and Instructions for tenders and Standard Form of Contract are applicable to the contract in dispute. 11. Clause 63 of the General Conditions of Contract speaks of settlement of dispute by arbitration. It reads :- "63. Matters finally determined by the Railway. All disputes and differences of any kind whatsoever arising out of or in connection with the contract, whether during the progress of the work or after its completion and whether before or after the determination of the contract, shall be referred by the contractor to the Railway and the Railway shall within a reasonable time after receipt of the contractor's representation make and notify decisions on all matters referred to by the contractor in writing provided that matters for which provision has been made in clauses 18, 22(5), 39, 45(a), 55, 55A(5), 61(2) and 62(1)(xiii)(B)(e)(b) of the General Conditions of Contract or in any clause of the special conditions of the contract shall be deemed as 'excepted matters' and the decisions thereon shall be final and binding on the contractor provided further that 'excepted matters' shall stand specifically excluded from the purview of the arbitration clause and not be referred to arbitration." 12. Thus, it is clear that clause 63 is very wide in its scope. Differences of any kind whatsoever arising in connection with the contract are made the subject-matter of arbitration except the "excepted matters" and the matters which have become final by the terms of the contract by the opinion of the Chief Engineer. 13. The present dispute is :- (a) refund of security deposit amounting to Rs. 1,50,000/- deducted in cash from the running bills and release of two Bank Guarantees amounting to Rs. 25,000/- and Rs. 20,000/-; (b) payment of Rs. 7,50,000/- towards work done but not paid by the respondents; (c) re-imbursement of Rs. 3,25,000/- towards loss of money paid for procuring earth from private fields which could not be taken due to wrong and illegal termination of the contract by the respondents; (d) re-imbursement of Rs. 1,70,000/- towards cost of procuring earth from private fields due to abnormal delay on the part of the respondents in acquiring and handling over the land to the claimant on which work was to be done; (e) re-imbursement of Rs. 7,86,000/- towards losses due to idling of heavy machinery due to delay on the part of the respondents in acquiring/handling over the land on which work was due to be done by the claimant; (f) re-imbursement of Rs. 25,000/- paid by the claimant to M/s Fairdeal Marwar Garages Pvt. Ltd. Indore, for procurement of 3 Nos. dumpers forfeited by them as purchase could not be effected on account of grave uncertainties in acquisition of land by the respondents; (g) re-imbursement of Rs. 3,68,000/- towards loss by profit on the work illegally withdrawn by the respondents; (h) re-imbursement of Rs. 1,50,000/- as overhead expenses incurred in the 10 months of idling period due to delay in acquisition of land by the respondents; (i) re-imbursement of Rs. 1,00,000/- towards infructuous expenditure incurred by the claimant on demobilisation; (j) payment of pendente lite interest @ 18% per annum from the date of filing claims i.e. 13.11.1987 till payment of the amount of above claims; and (k) payment of Rs. 50,000/- as arbitration costs." 14. On perusal of the above said items of the claim it is obvious, therefore, that the dispute as such is arbitrable under clause 63 of the General Conditions of Contract as it arises from out of the contract. 15. The next question that would arise for consideration is, "whether it is excepted in the contract from the arbitration clause ?" clause 64 speaks of demand for arbitration. It inter alia provides that - "64. Demand for arbitration - (1)(i) In the event of any dispute or difference between the parties hereto as to the construction or operation of this contract, or the respective rights and liabilities of the parties on any matter in question, dispute or difference on any account, or as to the withholding by the Railway of any certificate to which the contractor may claim to be entitled to, or if the Railway fails to make a decision within a reasonable time, then and in any such case, save the 'excepted matters' referred to in clause 63 of these conditions, the contractor, after 90 days but within 180 days of his presenting his final claim on disputed matters, shall demand in writing that the dispute or difference be referred to arbitration. * * * 16. A combined reading of clauses 63 and 64 of the General Conditions of the Contract goes to show that the matters excepted which are finally excluded from the scope of arbitration have been enumerated exhaustively in clause 63. 17. Beating this in mind, I proceed to read clauses 18, 22(5), 39, 45(a), 55, 55-A(5), 61(2), 62(1)(xiii)(b)(e)(b) of the General Conditions of the Contract, which read :- "18. Illegal gratification. Any bribe, commission, gift or advantage given, promised or offered by or on behalf of the contractor or his partner, agent or servant or any one on his or on their behalf to any officer, or employee of the Railway or to any person on his or their behalf in relation to the obtaining or the execution of this or any other contract with the Railway shall, in addition to any criminal liability which he may incur, subject the contractor to the rescission of the contract and all other contracts with the Railway and to the payment of any loss or damage resulting from such rescission, and the Railway shall be entitled to deduct the amount so payable from any moneys due to the contractor under the contract or any other contracts with the Railway. The contractorshall not lend or borrow from or have or enter into any monetary dealings or transactions either directly or indirectly with any employees of the Railway and if he shall do so the Railway shall be entitled forthwith to rescind the contract and all other contracts with the Railway. Any question or dispute as to the commission of any offence or compensation payable to the Railway under this clause shall be settled by the General Manager of the Railway in such manner as he shall consider fit and sufficient and his decision shall be final and conclusive. 27(5). Meaning and intent of Specifications and Drawings If any ambiguity arises as to the meaning and intent of any portion of the specifications and drawings or as to execution or quality of any work or material or as to the measurements of the works, the decision of the Engineer thereon shall be final subject to appeal (within seven days of such decision being intimated to the contractors) to the Chief Engineer who shall have the power to correct any errors, omissions or discrepancies in the specifications, drawings, classification of work or materials, and whose decision in the matter in dispute or doubt shall be final and conclusive 39. Rates for extra items of works Any item of work carried out by the Contractor on the instructions of the Engineer which is not included in the accepted schedule of rates shall be executed at the rates set forth in the Schedule of Rates of Northern Railway modified by the tender percentage and where such items are not contained in the latter at the rates agreed upon between the Engineer and the Contractor before the execution of such items of work and the Contractor shall be found to notify the Engineer at least seven days before the necessity arises for the execution of such items of work that the accepted schedule of rates does not include a rate or rates for the extra work involved. The rates payable for such items shall be decided at the meeting to be held between the Engineer and the Contractor, in as short a period as possible after the need for the special item has come to the notice. In case the Contractor fails to attend the meeting after being notified to do so or in the event of no settlement being arrived at the Railway shall be entitled to execute the extra works by other means and the contractor shall have no claim for loss or damage that may result from such procedure. 2. Provided that if the contractor commences work or incurs any expenditure in regard thereto before the rates are determined and agreed upon as lastly hereon-to-fore mentioned, then and in such a case the Contractor shall only be entitled to be paid in respect of the work carried out or expenditure incurred by him prior to the date of determination of the rates aforesaid according to the rates as shall be fixed by the Engineer. However, if the contractor is not satisfied with the decision of the Engineer in this respect he may appeal to the Chief Engineer within 30 days of getting the decision of the Engineer, supported by analysis of the rates claimed. The Chief Engineer's decision after hearing both the parties in the matter would be final and binding on the contractor and the Railways. 45. Measurements of Works The contractor shall be paid for the works at the rates in the accepted schedule of rates and for extra works at rates determined under Clause 39 of these conditions on the measurements taken by the Engineer or the Engineer's representative in accordance with the rules prescribed for the purpose by the Railway. The quantities for items the unit of which in the accepted schedule of rates is 100 or 1000 shall be calculated to the nearest whole number, any faction below half being dropped and half and above being taken as one, for items the unit of which in the accepted schedule rates is single, the quantities shall be calculated to two places of decimals. Such measurements will be taken of the work in progress from time to time and at such intervals as in the opinion of the Engineer shall be proper having regard to the progress of the works. The date and time on which'on account' or final measurements are to be made shall be communicated to the Contractor who shall be present at the site and shall sign the results of the measurements (which shall also be signed by the Engineer or the Engineer's representative) recorded in the official measurement book as an acknowledgement of his acceptance of the accuracy of the measurement. Failing the Contractor's attendance, the work may be measured up in his absence and such measurements shall, notwithstanding such absence, be binding upon the Contractor whether or not he shall have signed the measurement book; provided always that any objection made by him to any measurement shall be duly investigated and considered in the manner set out below :- (a) It shall be open to the Contractor to take specific objection to any recorded measurement or classification on any ground within seven days of the date of such measurements. Any re-measurements taken by the Engineer or the Engine representative in the presence of the Contractor or in his absence after due notice has been given to him in consequence of objection made by the contractor shall be final and binding on the contractor and no claim whatsoever shall thereafter be entertained regarding the accuracy and classification of the measurement. 55. Provisions of Payments of Wages Act The Contractor shall comply with the provisions of the payment of Wages Act, 1936 and the rules made thereunder in respect of all employees directly or through petty contractors or sub-contractors employed by him in the works. If in compliance with the terms of the contract the contractor directly or through petty contractors or sub-contractors shall supply any labour to be used wholly or partly under the direct order and control of the Engineer whether in connection with the works to be executed hereunder or otherwise for the purpose of the Engineer such labour shall, nevertheless, be deemed to comprise persons employed by the Contractor and any moneys which may be ordered to be paid by the Engineer shall be deemed to be moneys payable by the Engineer on behalf of the Contractor and the Engineer may on failure of the contractor to repay such moneys to the Railways deduct the same from any moneys due to the contractor in terms of the contract. The Railway shall be entitled to deduct from any moneys due to the Contractor (whether under this contract or any other contract) all moneys paid or payable by the Railway by way of compensation of aforesaid or for costs of expenses in connection with any claim thereto and the decision of the Engineer upon any question arising out of the effect or force of this clause shall be final and binding upon the contractor. 55-A. Provisions of Contract Labour (Regulation and Abolition) Act, 1970 (1)-(4) * * * * * * (5) In every case in which, by virtue of the provisions of the aforesaid act or the rules, the Railway is obliged to pay any amount of wages to a workman employed by the contractor or his sub-contractor in execution of the work or to incur any expenditure in providing welfare and health amenities required to be provided under the aforesaid Act and the Rules or to incur any expenditure on account of the contingent liability of the Railway due to the contractor's failure to fulfil his statutory obligations under the aforesaid Act or the Rules, the Railway will recover from the contractor, the amount of wages so paid or the amount of expenditure so incurred, and without prejudice to the rights of the Railway under Section 20 sub-section (2) and Section 21 Sub-section (4) of the aforesaid Act the Railway shall be at liberty to recover such amount or part thereof by deducting it from the security deposit and/or from any sum due by the Railway to the contractor whether under the contract or otherwise. The Railway shall not be bound to contest any claim made against it under sub-section (1) of Section 20 and sub-section (4) of section 21 of the aforesaid Act except on the written request of the contractor and upon his giving to the Railway full security for all costs for which the Railway might become liable in contesting such claim. The decision of the Railway regarding the amount actually recoverable from the contract as stated above, shall be final and binding on the contractor. 61(1). * * * * * * 61(2). Payment on determination of contract Should the contract be determined under sub-clause (1) of this clause and the contractor claims payment for expenditure incurred by him in the expectation of completing the whole of the works, the Railway shall admit and consider such claims as are deemed reasonable and are supported by vouchers to the satisfaction of the Engineer. The contractor shall have no claim to any payment of compensation or otherwise howsoever on account of any profit or advantage which he might have derived from the execution of the work in full but which he did not derive in consequence of determination of the contract. The Railway's decision on the necessity and propriety of such expenditure shall be final and conclusive; 62. Determination of contract owing to default of contractor. (1) If the contractor should * * * * xiii(B) fail to give at the time of submitting the said tender :- * * * * * * * * (e) being such a retired engineer or retired officer suppress and not disclos at the time of submitting the said tender the fact of his being such a retired engineer or a retired officer or make at the time of submitting the said tender a wrong statement in relation to his obtaining permission to take the contract or if the contractor be a partner firm or an incorporated company to be a partner of director or such firm or company as the case may be or to seek employment under the contractor. Then and in any of the said cases, the engineer on behalf of the Railways may serve the contractor with a notice in writing to that effect and if the contractor does not within seven days after the delivery to him of such notice proceed to make good his default in so far as the same is capable of being made good and carry on the work or comply with such directions as aforesaid to the entire satisfaction of the Engineer, the Railway shall be entitled after giving 48 hours notice in writing under the hand of the Engineer (to rescind the contract as a whole or in part or parts as may be specified in such notice) and adopt either or both of the following courses :- (a) * * * * (b) to measure up the whole or part of the work from which the contractor has been removed and to get it completed by another contractor, the manner and method in which such work is completed, shall be in the entire discretion of the Engineer whose decision shall be final." 18. Learned counsel for the respondents has also pressed into service Special Tender Conditions and Instructions and has submitted that the contract between the parties was also subject to these conditions and the same find reference in Clause 63 of the General Conditions of the Contract. He has strenuously urged before me that most of the items of the claim of the petitioner squarely fell within these Special Conditions and were not arbitrable being "excepted matters." 19. When the items of claim Nos. (a) to (k), as reproduced in para 13 above are examined in the light of the provisions of clause 63, read with clauses 18, 22(5),39, 45(a), 55, 55-A(5), 61(2) and 62(1)(xiii)(B)(e)(b) of the General Conditions of the Contract and clauses 8.1, 9.2, 11.3, 12 and 21.5 etc. of the Special Tender Conditions, it becomes obvious that a few items are referable to arbitration whereas others are not on account of their being "excepted matters." 20. What is relevant to decide on the facts of the present case, however, is whether the dispute so arisen could be referred to the arbitration under clause 63 of the General Conditions of the Contract. 21. Clause 63 of the General Conditions of the Contract is so wide in its amplitude that all disputes arising out of the execution of the work could be referred to the Arbitrator. Clause 64 of the General Conditions of the Contract and the Special Tender Conditions speak of "excepted matters." On a careful reading of the items of claim of the petitioner in the light of clauses 63, 64 read with clauses 18, 22(5), 39, 45(a), 55, 55-A(5), 61(2) and 62(1) (xiii)(B)(e)(b) of the General Conditions of the Contract and Special Tender Conditions, I find that all the items of the claim are not "excepted matters." That being so, the Subordinate Court was wrong in holding that the claim of the petitioner was not referable to Arbitrator. 22. It is true that a dispute to be arbitrable must at once arise out of the agreement and must also fall within the ambit of the arbitration clause. But, the dispute which is in question herein cannot be said to fall outside the agreement. It does arise under the agreement but all that clause 63 states is that the claims that fall under the "excepted matters" are not arbitrable. However, if the contractor raises a dispute contending that he is entitled to certain re-imbursement/compensation resulting from unilateral termination of the agreement, that dispute must necessarily be decided by some authority. It will be for that authority to say, upon an examination of the question, whether clauses 18, 22(5), 39, 45(a), 55, 55-A(5), 61(2) and 62(1)(xiii)(B)(e)(b) of the General Conditions of Contract and clauses 8.1, 11.3, 12, 21.5 etc. of the Special Tender Conditions are attracted, and that in view of these clauses the claims mentioned in para 13 above could be raised by the contractor. In conceivable cases, even the existence or non-existence of a dispute might itself assume the character of a dispute for adjudication by the Arbitrator. The Arbitrator is also competent to decide whether that dispute is excluded from arbitration clause. In holding this view, I am fortified by the ratio laid down in Assistant Engineer Co. v. Life Insurance Corporation of India,1983 Arb.L.R. 399 (DB). 23. So far as the interpretation of the contract and the terms thereof is concerned, it is primarily for the Arbitrator to go into them. There is no reason to suppose that the Arbitrator will not abide by the terms and conditions governing the contract. In case certain matters have been made final as per decisions of certain officers, and those decisions exist, the Arbitrator will as well be bound by them. Subject to these observations, the Arbitrator will give effect to the terms and conditions of the contract and abide by the decisions as have been made final in terms thereof, the disputes and differences between the parties as mentioned in the earlier part of this judgment, are referred to the arbitration of an Arbitrator to be appointed by the General Manager of the Northern Railway. Both the sides will be entitled to submit their claims before the Arbitrator. The appointment be made within two months of the communication of this order to the General Manager. The award be delivered within four months of entering upon the reference. 24. Consequently, this petition is allowed. The impugned judgment is set aside. There shall be no order as to costs. Petition allowed.