( 1 ) THE plaintiff has preferred this appeal under Section 39 (1) of the Arbitration act, 1940, against the dismissal of its application under Section 20 of the Act.

( 2 ) THE plaintiff-firm is a registered Engineering Contractor at Tawa in Hoshangabad district. It submitted tender on 4-11-70 for Group VI-B of Tawa project at Tawa. The tender was accepted by the State Government on 22-1270 to the extent of the works amounting to Rs. 40 lacs. The acceptance of tender was communicated to the plaintiff on 29-12-70 by the Chief Engineer. The contract was signed on behalf of Governor of the State of M. P. by the Chief engineer at Tawa on that date. The work was commenced by the plaintiff in january 1971 and continued up to February 1972. Under Clause 3-3-29 of the contract, the Superintending Engineer, Tawa, was the person in charge of the project and his decision was final on all questions. However, if the contractor was dissatisfied with his order, he could give a notice in writing to the superintending Engineer for referring the dispute to Arbitration. The government was the competent authority to appoint an arbitrator. On 16-101971 the Executive Engineer asked the pla