JUDGMENT

THOMMEN, J.:— This appeal arises from the judgment of the High Court of Madhya Pradesh at Jabalpur dated 6-8-1974 in First Appeal No. 146 of 1969. The appellant entered into a contract with the respondents for the supply of hard granite chips for the construction of NH/43 at four reaches. Since hard granite chips were not available, it was agreed between the appellant and the respondents that the appellant would supply hard stone chips instead of hard granite chips. The payment was agreed to be paid in terms of the Schedule of Rates of the Dandakaranya Project., Dispute arose between the parties in respect of the rate of Payment. The appellant contended that it was entitled to be paid the rates prescribed under the contract for hard granite chips and not the rates under the Schedule for hard stone chips.

2. The dispute between the parties was referred by the Court in terms of S. 20 of the Arbitration Act, 1940. The reference was made, notwithstanding the objections on the part of the respondents. The respondents contended that the matter in dispute was outside the scope of the arbitration clause. That objection was rejected by the learned Additional District Judge. An advoc