( 1 ) THIS is an application under Section 33 of the Indian Arbitration Act disputing the existence of an arbitration agreement whereunder certain disputes between the parties can be adjudicated.

( 2 ) THERE is a contract between the parties whereby the contractor being the above respondent is to fabricate and supply 11000 tents to the Government. The Government was to supply the stores or materials to be used by the contractor for the fabrication of these tents. The contract is evidenced by a tender submitted by the contractor and accepted by an officer of the Government for and on behalf of the Governor-General-in-Council. It will be necessary to refer later to some of the terms of the contract. In terms of the contract the Government supplied materials of considerable value to the contractor and the contractor gave a bank guarantee which at the material time stood at Rs. 30 lacs. This bank guarantee was given in terms of the contract. The contractor was to be responsible for loss of materials on account of theft, pilferage and civil commotion and was to remain accountable for the materials supplied by the Government The bank guarantee was given by the contrac