D.K.MAHAJAN
Arun and Co. – Appellant
Versus
Union of India – Respondent
2. There was a contract for the purchase of Aerosol Bombs from the Director General of Supplies and Disposals, who was acting on behalf of the Union of India. The contract was concluded by two documents, the tender and the acceptance of the tender. The tender was made on the 29th July, 1952, Exhibit P.1, and the same was accepted on the 12th August, 1952. One of the printed clauses in the contract, namely, clause 14, is the usual arbitration clause and is in these terms :
"14. All disputes and differences arising out of or to any wise touching or concerning this agreement whatsoever shall be referred to the sole arbitration of the Director General of Supplies and Disposals, and if the said Director General is unable or unwilling to act, to the sole arbitration of such other person as is nominated by the said Director General. It will be no objection to any appointment that the Director General of Disposals or the person appointed by him is a Government servant; that he had had to deal with the matters to which
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