RAMANUJAM J. :- The plaintiff in O.S. No. 310 of 1970 on the file of the Sub Court, Salem, is the appellant before us. It is a partnership firm carrying on business at Salem. The defendant is a private limited company having its office at Calcutta.

2. One Messrs India Patent Stone Co. Ltd., entered into an agreement on 16-5-1964 with the plaintiff for the supply, erection and commissioning of a complete plant for the manufacture of 10 tons of solid alum per day at Salem. The contract was later concluded in or about August 1965. Messrs India Patent Stone Co. Ltd., was subsequently taken over by the defendant-company. According to the plaintiff, the defendant failed to perform its part of the contract within a reasonable time in accordance with the terms and conditions of the contract both in respect of the supply of materials and in the matter of erection and commissioning of the plant and, therefore, the defendant had committed a breach of the contract rendering itself liable for damages. Since the contract contained an arbitration clause, the plaintiff filed an application under Section 20 of the Indian Arbitration Act 1940, to file the arbitration agreement and, to make a