2.According to the petitioner, he entered into an agreement with Southern Railway for displaying commercial advertisement at the façade, Madurai Railway Station on 11.6.2011 for a period of five years commencing from 29.4.2011 to 28.4.2016. During the course of its business, certain disputes have arisen between the parties and consequently the first respondent herein has invoked the bank guarantee with a mala fide intention, thereby causing great loss to the petitioner's firm. In terms of the agreement entered into between the parties, an Arbitration clause is provided for reference to sole arbitration. Subsequently, the first respondent terminated the agreement with effect from 27.7.2015 and that the security deposit was forfeited. Since in terms of the agreement entered into between the parties, an arbitration clause is provided for reference to sole arbitrator, the petitioner sent a communication to the first respondent on 23.07.2015 to refer to the disputes to arbitration as contemplated under the above clause of the tender agreement and not to en-cash the bank guarantee pending disposal of the arbitration proceedings.
