ORDER :- This is an application for stay under S. 34 of the Indian Arbitration Act. The application is resisted on two grounds - (i) the applicant has taken steps in the proceedings and (ii) that the contract containing the arbitration clause has been modified by subsequent agreements to such extent that the arbitration clauses have become ineffective and that the arbitration agreement does not cover the disputes raised in the suit.

2. The suit is for the recovery of the sum of Rs. 2, 43, 804/13/4. The claim is under a contract for the distribution of a cinematograph film. The plaintiff is the Producer and the defendant No. 1 is the Distributor. The film proved to be very successful and had a long run in a large number of cinema houses. It is said that the box office receipt was very heavy. After giving credit for Rs. 10,000/- paid by the defendant No. 1 to the plaintiff there was due and owing to the plaintiff a large sum as claimed in the plaint. The defendant by his solicitors letter dated November 24, 1958 contended that the amount due to the plaintiff would not be as much as claimed but would be only Rs. 1, 01, 048.18. The disputes between the parties not having been settled th

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