Judgment

RAMASWAMI, J. : This appeal is brought, by special leave, from the judgment of the Punjab High Court, dated February 22, 1962 Civil Revision No. 331-D of 1958 whereby the High Court upheld and confirmed the judgment of the Appellate Court and set aside the judgment of the trial Court staying proceedings in the suit.

2. The Uttar Pradesh Co-operative Federation Limited (hereinafter referred to as the Society ) was registered under the Co-operative Societies Act No. II of 1912 at Lucknow and was carrying on the business of plying public carriers on Kanpur Delhi route. The Society had been granted, for this purpose, permits by the Uttar Pradesh Government and Delhi Administration for seven vehicles. In March 1954, the Society entered into an agreement with the plaintiffs M/s. Sunder Brothers - through Bimal Kumar Jain and Dhan Kumar Jain by which they were appointed as Managing Agents for carrying on the business as public carriers. The terms of the Managing Agency agreement were embodied in a letter, dated March 2, 1954 written by the Secretary of the Society. Clause 28 of the agreement reads as follows :

"That in the event of there being any dispute regarding the terms and co