( 1 ) THIS appeal is directed against the order dated March 11, 1996, passed by the learned Civil Judge (S. D.), Nadiad, below application Ex. 5 in Miscellaneous Civil Application No. 113 of 1995, which was filed by the respondent herein under S. 34 of the Arbitration Act, 1940 for staying the proceedings of Special Civil Suit No. 114 of 1995 filed by the appellant herein for recovering an amount of Rs. 5 lacs.

( 2 ) THE respondent-defendant herein had supplied certain equipments including transformers to the appellant-plaintiff in the year 1995. There were disputes between the parties. The respondent-supplier claimed Rs. 19 lacs (Approx.) being balance amount of consideration whereas the case of appellant-plaintiff was that because of the defects in the machines, the appellant had suffered damage of Rs. 24 lacs. The appellant, therefore, prayed for a decree of Rs. 5 lacs from the respondent herein by filing Special Civil Suit No. 114 of 1995 in the Court of the learned Civil Judge (S. D.), Nadiad on September 4, 1995.

( 3 ) IN the aforesaid suit, the respondent-defendant appeared and on November 22, 1995, filed Miscellaneous Civil Application No. 113 of 1995 under S.