( 1 ) THE challenge in this suit is to the award of the Arbitrator/dated 31st December 1977 on a dispute having been referred to him.

( 2 ) BRIEFLY stated the facts are that in pursuance of an invitation to tender the respondent No. 1/objector gave an offer for the supply of C. I. Brake Blocks. This offer included a price variation clause which, inter alia, provided that the price offered would be subject to various in case of increase in price of the raw material being used.

( 3 ) THE petitioner/union of India accepted the offerlide its acceptance of tender dated 30th June 1975, by an advance acceptance of tender. Subsequently, a formal acceptance of tender was issued dated 7th August 1975 in which clause 7 read as follows : "conditions of Contract :- As contained in form No. DGSandd-68 (Revised) includinglexcluding clause 24 thereof as amended to date will apply to this contract. " (Italics added ).

( 4 ) ACCORDING to respondent No. 1 the acceptance of tender was not unqualified because no variation clause had been incorporated therein as had been suggested by the said respondent. Thereupon, a letter was issued amending the acceptance of tender and incorporating