( 1 ) THIS is an application on behalf of the defendant-respondent under Section 10 of the Code of Civil Procedure, 1908 for stay of the plaintiff's suit in this Hon'ble Court. The relevant facts are stated as follows.

( 2 ) IN 1970 Madhya Pradesh Electricity Board, a statutory body, hereinafter described as "the Board", had invited tenders for the supply of galvanised bolts and nuts for high tension and transmission lines. The terms and conditions of supply, specification of the bolts and nuts and quantity were contained in the Board's specification (1) "project TR-47". The plaintiff M/s. Brijlal and Company a registered partnership firm at 22, Burtolla Street, Calcutta, hereinafter described as "the Contractor" duly submitted its tender which was accepted by the Board. Free samples of bolts and nuts were submitted fay the Contractor to the Board. The said samples were approved and formal order was placed by the Board on 30th October. 1970. It was agreed between the parties that the petitioners would open a Letter of Credit in Calcutta after receipt of the security deposit from the Contractor. The contractor submitted the Bank guarantee in respect of security dep