( 1 ) THIS appeal is at the instance of the State of West Bengal and it arises out of a suit instituted by the respondent for recovery of money.

( 2 ) THE respondent entered into a contract with the appellant for the execution of the following works :-- (1) The construction of the main hospital building, kitchen and morgue of 58 bedded Sub-Divisional Hospital at Arambagh in the District of Hooghly. (2) The construction of the infectious wards and staff quarters of the said hospital.

( 3 ) THE terms of the contract contained in the tender form issued on behalf of the appellant includes a provision for arbitration in Clause 25 thereof which provides inter alia that all questions and disputes relating to the meaning of the specifications, designs, drawings and instructions and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever, arising out of or relating to the contract shall be referred to the sole arbitration of the Chief Engineer of the department. It further provides that should the Chief Engineer be for any reason unwilling or unable to act as such arbitrator, such questions and di