( 1 ) THIS Civil Miscellaneous Appeal is preferred against an order of the learned Subordinate Judge, Adoni, refusing to stay the suit under S. 34 of the Arbitration Act. Defendant is the appellant.

( 2 ) PLAINTIFF is a firm dealing in cotton at Adoni. The defendant is a Mill at Coimbatore. Whenever the defendant required cotton, it placed an order with the plaintiff which supplied cotton on payment. On 27-12-1985 the defendant requested the plaintiff to despatch cotton bales discounting the Hundis with Lakshmi Vilas Bank, at Adoni, and present the documents for payment through the State Bank of India, Coimbatore. Accordingly, the plaintiff sent 150 bales on 8-1-1986 in respect of which he drew six Hundis for Rs. 4,22,000/- in the name of the Carrier and discounted them through Lakshmi Vilas bank, Adoni, instructing the Bank to present the Hundis to the State Bank of India, Coimbatore. Another 50 bales were despatched on 16-1-1986, valued at Rs. 1,40,000/-, following the same procedure with respect to Hundis. On 29-4-1986 the defendant released one Hundi for Rs. 60,000/- the remaining Hundis were returned on 12-5-1986. Thereupon the plaintiff called upon the defend