JUDGMENT

K. N. SAIKIA, J. :—This appeal by special leave is from the appellate judgment of the Calcutta High Court in Appeal No. 75 of 1981 (reported in AIR 1982 Cal 440) dismissing the appeal and upholding the judgment of the learned single Judge granting stay of the appellants suit on the respondents application under Section 34 of the Arbitration Act, 1940.

2. The appellant as plaintiff has instituted suit No. 736 of 1978 on 29-9-1978 in the original side of the Calcutta High Court against the respondent as first defendant and Canara Bank as second defendant stating in the plaint, inter alia, that the first defendant, was the sole and absolute owner of two fishing trawlers, Ave Maria-I and Ave Maria-II, registered under No. 1567 dated 30th January,1974 and No. 1568 dated 30th January, 1974 with the Registrar of Indian Ships, Cochin; that the said trawlers were imported by the first defendant with financial assistance of the second defendant, Canara Bank, under Import Licence No. P/CC/2062299 dated 3rd March, 1971 issued by or on behalf of the Chief Controller of Imports & Exports, Ministry of Commerce, Government of India, New Delhi, that in or about March 1977 the first defendan