( 1 ) THE State has preferred this appeal under Section 39 of the Arbitration Act, 1940, against the judgment and decree of the District Judge setting aside the award given by the Arbitrator under Section 30 of the Act.

( 2 ) THE respondent is a contractor and his tender for construction of Hasdeo project Main Canal, excavation and forming embankment from R. D. 12301 M. to R. D. 12720 M. and R. D. 13921 M. to R. D. 14160 M. Group No. IV for an amount of Rs. 1,38697. 60p. /- was accepted by the superintending Engineer, hasdeo Project, Circle Korba, and the acceptance was conveyed to the respondent on 17-3-1969. It appears that before execution of the contract some dispute arose between the parties regarding interpretation of the rate for item No. 11 of the tender and the superintending Engineer wanted to put his own interpretation by way of clarification but the same was not accepted by the respondent. So on 21-5-69 a written contract was executed by the parties on the basis of the tender accepted without adding any clarification, Clause 29 of the contract provided that the decision of the Superintending Engineer would be final, conclusive and binding on the parties in