( 1 ) THIS is an appeal under Section 39 of the Arbitration Act. It arises out of an application filed by the defendant-appellant under Section 34, Arbitration Act, for the stay of a suit. The suit in question was filed by M/s Hans Raj Gupta and Co. , on 1-2-1950 against two defendants. The first defendant was the Union of India, the appellant in the present appeal, and the second defendant was one Sri Mahesh Chandra Gupta. Defendant No. 2 did not put in appearance, and the suit proceeded ex parte against him. In the suit, the plaintiff claimed a decree for Rs. 2,28,397/14/5 against defendant No. 1 on the ground that there was a contract entered into between defendant No. 1 and defendant No. 2 by virtue of which defendant No. 2 undertook to supply fire-wood to defendant No. 1. The plaintiff claimed to be the, assignee of the interest of defendant No. 2, and hence entitled to the amount claimed. It may be mentioned that in the plaint itself there was a definite and clear reference to the terms of the contract entered into between defendant No. 1 and defendant No. 2. The allegations in paras 7 and 8 of the plaint would further indicate that there was also a reference in the p