R.V. Raveendran, J. - (1.) Leave granted.
(2.) Under an agreement dated 7.4.1992, Respondent agreed to manufacture and pack Appellants product (ice cream) as per the specifications and standards of the Appellant. Clause 20 of the said agreement provided for settlement of disputes by arbitration. The said clause provided that the venue of arbitration should be Delhi and contract was subject to Delhi jurisdiction.
(3.) Respondent filed a suit (T.S. No. 40/1995) in the court of learned Munsif, Gaya (Bihar) for an injunction to restrain the Appellant from interfering with the manufacture and supply of ice cream by the Respondent. On being served with the notice of the said suit, the Appellant filed an application under Section 34 of Arbitration Act, 1940 (Act for short) for stay of proceedings in the suit on the ground that the contract between the parties provided for arbitration. The learned Munsif by order dated 3.8.1995 allowed the Appellants application under Section 34 of the Act and stayed further proceedings in the suit.;