( 1 ) THIS is an appeal by the defendant in civil suit No. 2-B of 1958 against the order made by the First Additional District Judge, Raipur on 30-1-1964 dismissing its application for staying the trial of the suit under Section 34 of the Arbitration Act.

( 2 ) THE principal question in the appeal is whether the document dated 26-9-1957 establishes a new contract between the parties superseding the previous contracts dated 28-5-1957 between them.

( 3 ) THE plaintiff averred in the plaint that the two previous contracts between the parties were settled on 26-9-1957 and replaced by a new contract, and the defendant agreed to supply cloth on the terms contained in the new contract. The plaintiff also urged in the plaint that the defendant agreed to pay compensation in respect of 54 bales of cloth which were not supplied under the previous contracts. The suit is for the recovery of damages for breach of the contract dated 26-91957.

( 4 ) THE contention of the defendant is that on 28-5-1957 the parties had entered into two contracts under which the defendant agreed to supply cloth to the plaintiff. Both the contracts contained an arbitration Clause (clause 21) to the follow