( 1 ) THIS is an application for stay of a suit under Section 34 of the Indian Arbitration Act. It is not disputed that the disputes in suit are covered by the arbitration clause in the contract subsisting between the parties. In fact such disputes have already been referred to arbitration in terms of the arbitration clause. The contention of the respondent is that the petitioner has taken step in the suit and in consequence the suit is not liable to be stayed. The facts relevant to the determination of the question may now be shortly stated. The suit was instituted on December 23, 1964. On the same date the plaintiff took out a notice of motion and obtained an interim injunction. The notice was returnable on January 4, 1965. What happened on January 1, 1965 when the motion was called will appear from paragraph 4 of the affidavit of Sunil Kumar Mitra which reads as follows:"on January 1, 1965 the injunction and Receiver matter appeared as 'new Motion' before the Hon'ble Mr. Justice S. P. Mitra. When the matter was called on Mr. B. N. Sen counsel for the respondent instructed by me as the Solicitor for the respondent firm (the same set of counsel and Solicitor as