( 1 ) THE respondent plaintiff brought a suit under Order 37 Civil Procedure Code against the appellant, the Food corporation of India, for recovery of Rs. 3 lakhs and odd, on the allegation that he submitted on 27-1-1978 a tender for the supply of 500 rolls of black polythene film at the rate of Rs. 13. 87 per kg. and his tender was accepted on 28-3-1978. In pursuance of the terms of the contract, inspection of the goods was carried out from 16-5-1978 to 18-5-1978 by the said Corporation s regional office, Lucknow. The goods were then sealed and samples were taken for testing according to relevant ISI specification. The defendant communicated approval of the goods on 15-11-1978 and directed on 12-12-1978 that the goods be despatched to Patiala. Later on, the inspection note dated 19-1-1979 was also issued. The plaintiff then despatched the rolls on 25-1-1979. 95 per. cent of the price was immediately payable, but the defendant failed to pay. Meanwhile 5 per cent balance price had also become due. Hence, the suit for recovery of the price with interest at 15 per cent per annum.

( 2 ) THE defendant made two applications on 25-1-1980 one under section 34 of the Arbitra