JUDGMENT - 1. This appeal arises out of Notice of Motion taken out by the defendants for stay of plaintiffs suit under S. 34 of the Arbitration Act 1940.

(2) By two contracts dated 23rd June 1955 and 30th June 1955 defendants agreed to sell and plaintiffs agreed to purchase printed mercerised voil 41800 yards, July 1955 delivery. These contracts were provisional and were to be confirmed only on the production by the plaintiffs of the necessary purchase export licences. The licences were produced and the provisional contracts were confirmed by the parties on 1st July 1955.

(3) One of the terms of the contract was the defendants were to send samples of the goods in the first instance and that delivery of the goods was to be taken by plaintiffs only after they approved of the samples. It appears some time before 21st July 1955 samples of the goods were sent to plaintiffs.But plaintiffs did not approve of them and wrote to the defendants on 21st July 1955 asking them to prepare new samples according to the instructions contained in teir earlier letter of 5th July. They also asked the defendants to treat the July. They also asked the defendants to treat the matter as urgent as he delivery

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