( 1 ) THERE were certain transactions as to shares between the parties to this petition. Disputes arose between the parties. Concerning those disputes, the petitioner on May 3, 1963 filed a suit for accounts in the Court of Commercial Judge, Delhi, against the respondent (as defendant No. 1) and one K. K. Behl (as defendant No. 2 ). K. K. Behl was made a party defendant on the allegation that he was an agent of the respondent and that through him, the respondent was carrying on business in Delhi. Upon service of the summons of this suit, the respondent filed an application under section 34 of the Arbitration Act for stay of the suit on allegation that there was an agreement between the parties for reference of any disputes arising between them to arbitration. This application was dismissed on the ground that K. K. Behl aforesaid, who was a party to the suit as defendant No. 2 was not a party to the allegedagreement for reference of disputes to arbitration.

( 2 ) UPON the dismissal of this application, the respondent filed his written statement and, inter alia, challenged the jurisdiction of the Delhi Courts to entertain the suit. This challenge was on two grounds-