( 1 ) THIS is an appeal by the Union of India from an order passed under Section 20 of the Indian Arbitration Act. The Union of India invited tenders for the supply of certain goods. The invitation contained inter alia the following query:"do you agree to sole arbitration by Director General of Supplies and Disposals or his nominee as provided in Clause 21 of me General Conditions of Contract Form W. S. B. 196? (Your acceptance or non-acceptance of this clause will not influence the decision of the tender. It should, however, be noted that an omission to answer the above question will be deemed, as an acceptance of the clause ). "

( 2 ) DEFENDANTS M/s. Himco (India) Private Ltd. submitted their tender dated October 3, 1956 wherein they stated at the foot of the query mentioned above as follows:--"we feel there should be an unattached arbitrator". The Union of India accepted the tender by A/t No. Cal. /pr-II (3)/16359-G/448 dated November 30, 1956. The acceptance stated inter alia that the conditions of the contract would be as contained in Form No. W. S. B. 138 as amended up to date. Clause 21 of the said Form contained the following arbitration clause:"in the event o