- (1.)The Mahabir Gram Udyog Mandal, Jotipura, Hissar, which is a registered body, had applied for the grant of loan of Rs. 66,800/- from the Haryana Khadi and Village Industries Board, respondent No. 2. Different amounts of loan were sanctioned by respondent No. 2 in favour of the petitioner under different heads and paid. The petitioner has come to this Court raising certain questions regarding the payment of interest, mode of recovery, time of recovery etc ., e.g. According to the petitioner 2-1/2 per cent was the rate of interest, which was to be paid to respondent No. 2 and further that for certain loans, no interest was chargeable for five years by respondent No. 2. The respondent No. 2, in the return, contested the claim of the petitioner and contested the points raised by it. The averment of the petitioner that according to the agreement in case of dispute, the matter was to be referred to arbitration was accepted by respondent No. 2. It was, however, averred by respondent No. 2 that no dispute referrable to arbitration existed between the parties.
(2.)The petitioner has raised purely questions of fact, which are disputed on behalf of respondent No. 2. The law is well-settled that writ petition cannot be entertained or adjudicated on the disputed questions of fact. The petition is misconceived, and requires dismissal on that point.
(3.)Clause 19 of Annexure P. 1, which is an arbitration clause is as under :-
"All disputes and differences arising out of or in any way touching or concerning this arrangement or the construction or the application thereof or any clause or thing herein contained or any account of valuation whatsoever shall be referred to the sole arbitration of any person nominated by the lender. There shall be no objection to any such appointment that the person so appointed is a servant of the lender or of any Government and/or Khadi and Village Industries Commission or that he had to deal with any matters to which this agreement relates and that in the course of his duties as such servant he had expressed views on all or any of the matters in dispute or differences. The award of such arbitrator shall be final and binding on the parties to this agreement. In the event of such arbitrator being transferred or vacating this office or unable to act for any reason the lender shall appoint another person to act as arbitrator in accordance with the terms of the agreement. Subject as aforesaid the Indian Arbitration Act, 1940 shall apply to the arbitration proceedings under the clause."

According to this clause, the parties had agreed for appointment of an arbitrator, to be appointed by the Secretary of respondent No. 2, with a clear understanding that the petitioner will not be permitted to raise any objection about the arbitrator. In view of this clause and the disputed questions of fact being involved in this case, the petition is dismissed with no order as to cost. The petitioner may have his remedy under clause 19 of Annexure P. 1 reproduced above.