1. - This is an appeal under Order 43 Rule 1(r). CPC read with Section 104, CPC against the order of the Distt. Judge, Jaipur City, Jaipur, dismissing the application filed by the plaintiff appellant, under Section 41 of the Arbitration Act, 1940 read with Order 9 Rules 1 and 2 CPC and Section 151 C.P.C. whereby the petitioner-plaintiff had prayed for stay of encashment of the bank guarantee.

2. Rajasthan State Electricity Board, respondent No. 1 (hereinafter referred to as the 'Board') accepted an offer of the appellant company for supply of 10 of ACSR Zebra Conductor, on the terms and conditions contained in the purchase order. A formal contract agreement was executed in writing between the parties on 22.10.1979. The said contract contained an arbitration clause mentioned in Section 26 thereof. As per the term No. 16 of the contract, the appellant was to furnish security deposit for the due fulfilment of the contract equivalent to 5% of the contract value in the form of a composite bank guarantee within fifteen days of the receipt of order and if the supplier, failed on neglected to observe or perform any of its obligations under the contract, it will be lawful for the de