LODHA, J.

( 1 ) THIS appeal under Section 39 of the Arbitration Act (No. X of 1940) (hereinafter referred to as the Act) is directed against the judgment and decree dated June 6, 1970 passed by the District Judge, Sri Ganganagar.

( 2 ) THE material facts, necessary for the disposal of this appeal, are these: the respondent (M/s. Sharma and Co.) entered into an agreement with the appellant (the State of Rajasthan) on December 17, 1961 for supply of forty lacs of Pacca bricks to the Irrigation Department of the government of Rajasthan. According to Clause 21 of the Agreement, all disputes arising between the parties in connection with the contract were required to be referred for arbitration to the superintending Engineer of the Irrigation as may be nominated by the government. The respondent (contractor) completed the supply by july 26, 1962 and a final bill was prepared on December 25, 1962. The respondent, inter alia, raised a claim for the payment of costs of 1,12,152 bricks and the concerned Department disputed the same. On April 15, 1967, an application under Section 8 of the Act was submitted by the respondent before the learned Senior Civil Judge, sri Ganga-nagar. T