( 1 ) (ORAL ).-THIS order will dispose of two applications being IA 520/87 filed by defendant No. 3 under Order 1, Rule 10 Civil Procedure Code and IA 453187 filed by defendant No. 1 under Section 34 of the Arbitration Act.

( 2 ) THE plaintiff has filed a suit for the recovery of money against the defendants and it is alleged in the plaint that it floated a tender for supply of sugar to the plaintiff. The plaintiff is a trading organisation and acts as a canalising agency for import and export of various goods. The sugar, for which the tender was floated, was required to be purchased and exported out of India.

( 3 ) DEFENDANT No. 1 is a company which owns a sugar mill and on 26th February, 1982 an agreement was reached between the plaintiff and defendant No. 1 whereby the plaintiff agreed to purchase from the first defendant 1850 M. T. of D-30 grade white crystal sugar of 1981-82 crushing season. According to the plaintiff the first defendent supplied 1406 M. T. of said sugar. Before the contract could be completed the Government of India imposed an embargo on the export of sugar from India. According to the plaintiff it was not under any obligation to lift the bal