A. N. Dikshita, J. - The instant appeal under Section 39 of the Arbitration Act, 1940 (hereinafter referred to as the Act) has been preferred against the judgment and order dated 20-7-1978 passed by Sri S. B. Misra, Civil Judge, Jhansi decreeing the plaintiff respondent's Suit No. 41 of 1977 titled as Janki Prasad Aggarwal v. Union of India.

Tenders for the sale of coal ash by, running contract basis by "Stock measurement" and on "lump sum" for the Jhansi "traffic area" for the period of one year were invited in the month of January 1978 by the Divisional Engineer, Central Railway, Jhansi (South). This period of one year was to be reckoned from the date of execution of the agreement. The tenderers to the offer were required to deposit Rs. 2500/- as security money along with the tenders which were to be opened on 29-1-1978.

Sri Janki Prasad Aggarwal plaintiff respondent (hereinafter referred to as the respondent) submitted his tender and his offer was accepted by Divisional Superintendent (W) on behalf of the President of India vide his letter dated 13-3-1975 and he was required to execute an agreement.

Parties entered into a contract and an agreement in writing was execute