Judgment

DUA, J.:- In this appeal by special leave the State of U. P. and the Divisional Forest Officer, Bijnor (defendants in the trial Court in the plaintiff-respondents suit) challenge the judgment and order of a learned Single Judge of the Allahabad High Court, allowing the plaintiff-respondents appeal and setting aside the order of the trial Court staying the suit under Section 34 of the Arbitration Act.

2. The plaintiffs had instituted a suit for the recovery of Rupees 69,556.27 by way of damages for breach of contract impleading the State of U. P. (through the Collector of Bijnor) as the first defendant and the Divisional Forest Officer, Bijnor as the second defendant. The summonses in the suit issued to the State of U. P. were served on the District Government Counsel. On September 22, 1966 the said counsel filed an appearance slip in the Court and also put in a formal application praying for one month s time for the purpose of filing written statement. This prayer was granted. On October 1,1966 the District Government Counsel filed an application under Sec. 34 of the Arbitration Act pleading that there was an arbitration clause in the agreement between the parties to the s