( 1 ) IS the decision of a party to an arbitration contract about non- arbitrability of a dispute (excepted matters under the contract) final between the parties? At what stage, can objections regarding non-arbitrability of a dispute be taken? These are some of the interesting questions involved in this case.

( 2 ) NORTHERN Eastern Railway, Gorakhpur (the Railways) was constructing bridge over Kosi river. They entered into contract on 3rd November 1981 with M/s Madnani Construction Corporation (Pvt) Limited (the contractor) for constructing bridge island no. 13 and 14. There were special conditions in the contract (the SCC) and it states that General Conditions of Contract and standard specification of the Northern Eastern Railways (the GCC) shall form a part of this contract. This construction was to be completed by 15th February 1982. After completion, some payments were made to the contractor but were received by him under protest. The contractor served a notice dated 16. 11. 1983 for appointment of an arbitrator to settle the dispute. The General Manager of the Railways (the GM) rejected it on 24th March 1986 on the ground that the dispute was non-arbitrable