S.C.Ghose, J. - (1.)THIS application has been made by the Union of India inter alia for stay of the suit No. 4009 of 1969 (Raymon Engineering Works Ltd. v. Union of India) instituted in this Court by the respondent, Raymon Engineering Works Ltd.
(2.)THE said suit was filed by the Raymon Engineering Works Ltd. inter alia for a declaration that letters dated 17th February, 1965, 27th February, 1965, and 18th November, 1965, mentioned in paragraphs 20 and 38 of the plaint are void, inoperative and not binding upon the plaintiff. THE plaintiff has also prayed for delivery and cancellation of the said letters.
The plaintiff in the said suit has claimed also a decree for Rupees 32,33,391.08 P, alternatively an enquiry into the compensation and damages and decree for such sum as would be found due. The money part of the claim of the plaintiff in the plaint has been made on the basis of three several contracts entered into by and between the respondent and the petitioner whereby the respondent agreed to manufacture and supply railway wagons of diverse specifications on the terms and conditions mentioned in the said three contracts. The said contracts are contained in three several orders in writing bearing Nos. 61/RS(I)/954/l/258 dated the 14th April, 1961. No. 61/RS (I)/954/14/283 dated the 6th February. 1962 and No. 62/RS(I)/954/15/306 dated the 26th October, 1962, respectively. Each of the said contracts was subject to the terms and conditions contained in the Indian Railway Standard Conditions of contract known as A5-51 in so far as the said terms and conditions were not inconsistent with the conditions mentioned in the said contracts themselves. One of the terms or conditions of the said Indian Railway Standard Conditions of Contract provided as follows:

"In the event of any dispute arising under these conditions or in connection with the contract (except as to any matter the decision of which is specifically provided for in these conditions) the matter in dispute would be referred to two arbitrators, one to be nominated by the petitioner and one to be nominated by the respondent or in the case of the said arbitrators not agreeing then to an umpire to be appointed by the arbitrators in writing before proceeding on the reference and the decision of the arbitrators or in the event of their not agreeing, of the said umpire, would be final and conclusive and the provisions of the Indian Arbitration Act, 1940 and the rules thereunder and any statutory modification thereof would be deemed to apply to and to be incorporated in the contracts."

(3.)THE said arbitration clause by express agreement formed part of each of the said three several contracts.