In a suit for specific performance of an Agreement of Sale of immovable property the defendant along with his written statement files an application under Section 8 of the Arbitration & Conciliation Act for referring the parties to arbitration in accordance with arbitration clause contained in the Agreement to Sell. The plaintiff admits the existence of the arbitration clause as well as that the subject matter of suit is subject matter of such arbitration clause. The Court shall:

A. Dismiss the application on the ground of having not been filed before filing the written statement or taking any other steps in the proceedings

B. Allow the application and refer the parties to arbitration

C. Allow the application and stay further proceedings in the suit with right to the plaintiff to revive the suit if the defendant does not proceed with the arbitration with due diligence

D. Dismiss the application on the ground that claims for specific performance of Agreement to Sell are not arbitrable

Answer: Option B