M.M. Ismail, J.

1. This is an application under Section 34 of the Arbitration Act, 1940, by the defendant in C. S. No. 4 of 1968 on the file of this Court. The applicant-defendant and the plaintiff-respondent entered into a hire-purchase agreement dated 11th February, 1964, for the sale of one complete plant of bolts and nuts making machine by the respondent-plaintiff to the applicant-defendant. The case of the respondent-plaintiff is that the machine was supplied to the applicant defendant but notwithstanding that supply the applicant-defendant failed to pay the first to sixth instalments payable under the agreement in accordance with the terms of the agreement. The respondent-plaintiff further avers in the plaint that the applicant-defendant failed to pay the instalments which fell due, in spite of repeated reminders made by the respondent-plaintiff and allowed the same to accumulate that the respondent-plaintiff took steps to retake possession of the machinery in exercise of the power conferred upon it under Clause (4) of the agreement and served a notice dated 8th September, 1966, on the applicant-defendant through its Junior Field Officer; that the respondent-plaintiff'