P.K. Bahri, J.

1. This appeal is directed against order dates May 27, 1974, of the Sub-Judge, Delhi, by which he had accepted the objections filed by the respondent and had set aside the award.

2. It appears that taking resort to the arbitration clauses 20 and 21 appearing in the printed terms at the back of the bills issued by the appellant to the respondent, the appellant appointed Shri S.N. Kumar as Arbitrator and despite notice to the respondent, the State of Bihar did not appoint any Arbitrator and the State of Bihar also did not appear before the Arbitrator and the Arbitrator gave the award dated August 6, 1970, by virtue of which he awarded Rs. 16, 144/47 to the appellant as price of the goods supplied to the respondent and also filed the award in the Court taking resort under Section 14(2) of the Arbitration Act. Notice of the filing of the award was issued to both the parties and the respondent-State of Bihar filed the objections under Sections 30 and 33 of the Arbitration Act.

3. It was pleaded in the Objection Petition that there existed no arbitration agreement and thus, the matter could not be referred to the Arbitrator and the award given by the Arbitrator on that score was a nullity.

It was mentioned in the Objection Petition that on quotations being invited, M/s. Bharat Steel Tubes Limited gave their quotation and the State of Bihar placed the order for supply of tubes on certain terms which are reproduced in para 2 of the Objection Petition which show that 90% payment was to be made on proof of despatch and the balance 10% was to be paid within 15 days from the date of the receipt of materials at site after due vericfiation of materials. The bill in duplicate was sent to the Executive Engineer, P.H. Division Patna West, Patna, for payment. Other terms have also been quoted in this para which are not relevant for deciding the present appeal. It was averred that as there was no arbitration clause appearing in the contract entered into between the parties, thus, the Arbitrator had no jurisdiction to entertain the claim of the appellant and give any award. No other objection was raised in the Objection Petition.

4. In evidence, however, it came out that at first there was a contract entered between M/s. S.B. Industries and the respondent and certain letters were exchanged, copies of which have been referred to in the impugned order, and later on it was agreed between M/s. S.B. Industries and the respondent that the appellant shall supply the goods directly to the State of Bihar and also shall raise the bills directly on the State of Bihar and on the basis of that agreement, the appellant supplied the goods and along with the goods the appellant had issued the bills which contained the arbitration clauses as mentioned above. It is not disputed that the goods were supplied by the appellant to the respondent on the basis of the aforesaid bills which were accepted by the respondent without demur.

5. Now the short question which arises for consideration is whether the arbitration clauses printed on the bill could bind the parties or not

6. The learned Counsel for the respondent has vehemently argued that as there existed no arbitration clause in the agreement entered into between M/s. S.B- Industries and the respondent, there could be no occasion for any arbitration agreement coming into existence between the parties unless there has been some exchange of letters between the parties agreeing to such arbitration clauses. He has urged that in case the appellant wanted the agreement to be reached for arbitration clause, the appellant should have addressed a letter to the respondent insisting upon having an arbitration clause before supplying the goods.

7. The learned Counsel for the appellant, on the other hand, has argued that the goods were supplied on the basis of the said bills which contained the printed arbitration clause and as the goods were accepted along with the bills an implied contract regarding the arbitration clause came into existence between the parties. As the arbitration clause was in writing and it was not necessary that an arbitration agreement should be signed by both the parties, the arbitration clause is binding on the parties. It is settled by a judgment given by Division Bench of this Court in Sohan Lal v. M/s. Kishan Chander Ramesh Chander and Brothers, F.A.O. (OS) No. 99/81 decided on July 5, 1983, that it is not necessary that arbitration agreement which has to be in writing should be signed by both the parties. The only element which is required is that the parties should agree to the arbitration by a written contract and that does not mean that contract should also be signed by both the parties. It is a question of fact to be decided in each case whether arbitration agreement which is in writing has been agreed upon by the parties or not by giving express or limited consent In the cited case there were large number of bills issued by the supplier which contained the arbitration clause and only a few bills were signed by the opposite side still it was held that in fact, in all the bills the parties had impliedly agreed to be governed by the arbitration clause printed on the said bills.

8. For parity of reasons, it must be held that in the present case also the arbitration agreement came into being by the respondent giving implied consent by accepting goods on the basis of the said bills and making payment on the basis of the said bills to the appellant. So, the Lower Court was not legally right in coming to the conclusion that no arbitration agreement came into existence between the parties.

9. I allow the appeal, set aside the impugned order and dismiss the objections filed by the respondent and make the award a rule of the Court. The appellant shall be entitled to interest @ 6% per annum from the date of the decree till payment. Decree be prepared accordingly.