1. ' JAVID IQBAL, J.--This petition for leave to appeal is directed against order of the Lahore High Court, Lahore, dated 15th October, 1988 whereby FA.O. Of the petitioner was dismissed.
2. ' Briefly the facts are that the petitioner and respondent No,1 are stated to have entered into an agreement which contained an arbitration clause. Since a dispute had arisen, respondent No,1 applied to respondent No,2 to act as the arbitrator under the agreement. Respondent No,2 asked the petitioner to give its consent for arbitration but the petitioner declined whereupon respondent Nol moved the civil Court by way of an application under section 20 of the Arbitration Act that the petitioner be directed to file the agreement and that the dispute he referred to respondent No,2 or to any other arbitrator. The petitioner resisted the application contending that the alleged agreement had been obtained by fraud, that respondent No,1 had suppressed the facts, that it was only a company on paper and that the signatory of the same was not even a director. It was, therefore, contended that the question of validity of the agreement between the parties required to be decided by the Court and was not a matter which should have been left for the decision of the arbitrator. But the civil Judge repelling the contentions of the petitioner ordered that the dispute be referred to respondent No,2. This order was challenged by the petitioner by way of F.A O. Which as stated above has been dismissed by Lahore High Court, Lahore. Hence the present petition.
3. ' It was contended by Mr. K.MA. Samdani, learned counsel for the petitoner before us that the main point which requires determination is as to whether there was a valid agreement existing between the parties and that the nature of the dispute between them was such which could not be decided by the arbitrator but only by the Court of law. If the Court were to arrive at the conclusion that there existed a valid agreement between the parties only then in the case of a dispute the matter could be referred :o the arbitrator under the arbitration clause contained in the agreement.
4. ' Mr. S.M. Zafar learned counsel for the caveator-respondent No,1 tried to point out that if an agreement was ab initio void only then the matter would have to be decided by the Court but if the agreement was voidable at the instance of a party to the same then it was a matter to be decided by the arbitrator under the arbitration clause and that in the present case the petitioner was only claiming that the agreement was voidable.
5. ' After hearing learned counsel we grant leave in this case to further examine the contentions raised by the learned counsel for the petitioner. Security to be deposited in the sum of Rs,10,000.
6. The appeal to be prepared on the present record with direction to the parties to file all the relevant documents on which reliance will be placed by them. The appeal shall be fixed for hearing within three months. The proceedings before the arbitrator shall continue but no final decision disposing of the arbitration proceedings shall be made by the arbitrator.