Law:

Section:

(a) Arbitration Act (X of 1940)--­ ----S. 34---Reference to arbitration---Defendant's application for stay of suit--Suit was adjourned for handing over copy of plaint to defendant and for filing written statement---Asking for time to file written statement whether amounted to taking steps in the proceedings so as to disentitle defendant to apply under S.34, Arbitration Act, 1940, for stay of suit---Party could not be said to have acquiesced in the proceedings so as to amount to taking steps therein, by asking for time for filing written statement--=Case was not adjourned at the request of the defendant, but when defendant was being supplied copy of plaint for the first time, Court itself fixed next date for filing of written statement---Defendant's application for stay of suit, thus, could not have been rejected by Trial Court on that ground. (b) Arbitration Act (X of 1940)--­ ----S. 34---Reference to arbitration---Plaintiffs plea that dispute in question, was not covered by arbitration clause, was totally devoid of any merit---Nonpayment of specified amount by a party to arbitration agreement by itself was a dispute squarely covered by arbitration agreement which was wide, all embracing and comprehensive in nature---Refusal to pay a definite sum would constitute a dispute referable to arbitration in accordance with arbitration agreement---Dispute raised in suit in question, was covered by the arbitration clause contained in the arbitration agreement---Proceedings in suit were stayed for reference of dispute to arbitration. Pakistan International Airlines Corporation v. M/s. Pak Saaf Dry Cleaners PLD 1981 SC 553; Messrs Gill & Co. (Karachi) Ltd. v. Messrs Samad Aziz & Co. PLD 1961 (W.P.) Kar. 700 and Novelty Cinema, Lyallpur v. Firdaus Films and another PLD 1958 (W.P.) Lah. 208 ref. JUDGMENT This is an appeal under section 39 of the Arbitration Act, 1940, from the order of the learned trial Court dated 13-11-1989, refusing to stay the proceedings in a suit filed by the respondents under section 34 of the Arbitration Act, 1940. 2. The facts necessary for the disposal of this appeal are that the appellant had entered into a contract with the respondents…

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