ORDER

1. We have heard Shri Mool Chand Loharia who is a partner of the appellant-firm. He has brought to our notice various decisions of this Court as well as of the various High Courts. The firm had entered into in all 17 written agreements with the State Government in respect of various works in three irrigation projects. The language of all the agreements was the same. The relevant clauses of the agreement which have given rise to the present controversy between the firm and the State Government are clauses 22 and 23 which read as follows :

"22. All work to be executed under the contract shall be executed under the direction and subject to the approval in all respect of the Chief Engineer of the Government of Rajasthan for the time being, who shall be entitled to direct at what point or points and what manner they are to be commenced, and from time to time carried on.

Decision of the Chief Engineer to be final

23. Except where otherwise specified in the contract the decision of the Chief Engineer of Rajasthan for the time being shall be final, conclusive and binding on all parties to the contract upon all questions, relating to the meaning of the specifications, designs, drawings, and instructions hereinbefore mentioned and as to the quality of workmanship, or material used on the work or as to any other question, claim, right, matter, or things whatever in any way arising out of or relating to the contract, designs, drawings, specifications or estimates, instructions, orders or these conditions or otherwise concerning the works or the execution or failure to execute the same, whether arising during the progress of works or after the completion or abandonment thereof or the contract by the contractor shall be finally conclusive and binding on the contractor."

His contention is that these clauses spell out an agreement to refer the dispute to the arbitration of the Chief Engineer, and the Chief Engineer, as an arbitrator, is supposed to follow the provisions of the Arbitration Act and give an award under the said Act. For that purpose, the firm had made an application to the Chief Engineer. Since the Chief Engineer did not accept that the provisions of the said clauses spelt out an agreement for arbitration, he did not respond to the said application. Therefore, the firm filed a suit in the District Court for requiring the Court to refer the matter to arbitration under Section 20 of the Arbitration Act. The District Judge by his decision of 20-9-1982 dismissed the application relying upon the decision of this Court in State of U.P. v. Tipper Chand [(1980) 2 SCC 341 : AIR 1980 SC 1522] wherein a clause identical to the present clause 23 was the subject-matter of a similar controversy between the parties and this Court has held that it did not spell out an agreement to refer the dispute to arbitration. The firms revision before the learned Single Judge was rejected on the same ground and it is against the said decision of the learned Single Judge dated 19-1-1983 that the present appeals, viz., CAs Nos. 4261-62 of 1983 have been preferred.

2. The three learned Judges of this Court in Tipper Chand case [(1980) 2 SCC 341 : AIR 1980 SC 1522] after taking note of the clause which is identical in language to the present clause 23 on which reliance is placed on behalf of the appellant for spelling out an arbitration agreement, have held that the clause does not spell out an agreement for arbitration of the disputes. No doubt there is a subsequent decision of this Court of two learned Judges in Rukmanibai Gupta v. Collector [(1980) 4 SCC 556 : AIR 1981 SC 479] which has constructed a clause which fell for consideration there as a provision for referring the disputes to arbitration. That clause reads as follows :

"15. Whenever any doubt, difference or dispute shall hereafter arise touching the construction of these presents or anything herein contained or any matter or things connected with the said lands or the working or non-working