Should i use unreal engine 4 for my project?

My project is simply a multiplier game where all people connect to one server and then that server will create instances where number of players will play with each other in a room(no of players<30), so no we have multiple rooms with many players playing but not all on same server , but rather on separate server instances , after each game or room is done the room sends back the results to the server to be recorded , the player returns back again to the server where he can login again to join another room.

Only you can determine if UE4 is appropriate for your project or not. What I mean by this is you have to consider the fact that it will take time to learn UE4 (if you are not already proficient at using it) and even more time to learn the C++ functions specific to UE4 such as UFUNCTIONS and etc… Then, you would be able to get started working on your project assuming you already have background knowledge of how to do net coding.

Also, you did not list specifically what your idea for the project is but rather the flow of gameplay that you intend to have. UE4 can basically be used to create anything you imagine much like other game engines like Unity, CryEngine, and etc… The only thing specific to UE4 compared to others is blueprints as well as being one of the most graphically powerful engines.

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Seems like what you want is just a standard client and server game + an external matchmaking server.
Definitely possible, in fact that’s what I’m doing.