( 1 ) THIS petition had been filed on 15th March, 1965 by the Union of India petitioner under Section 31 of the Arbitration Act for reliefs that it be declared that there is a valid, concluded binding contract between the parties and that the reference to the appointed Arbitrator is valid and binding. The petitioner has come to the Court on the allegations that a second road bridge was to be constructed over the river Jamuna behind Hamayun s Tomb Delhi, and the petitioner on 4th September. 1959 invited tender for the said construction from approved contractors, in pursuance of which the respondent submitted its tender on 1st December. 1959 for a sum of Rs. 48,73,800 according to its own design accompanying the tender and thereafter there were prolonged negotiations and finally a letter of acceptance dated 11th May, 1961 (Exhibit R. 20) was issued by the petitioner to the respondent which, according to the petitioner, concluded the formation of the contract. It is further alleged in the petition that the site of the work was handed over to the respondent on 12th July. 1961 and owing to the floods in the river, boring work could begin only on 23rd October, 1961 and then on