JUDGMENT

S. Saghir Ahmad, J.-Appellant is a Chit Fund Private Limited Company. Respondent No. 1 subscribed to the appellant s chit fund scheme for the value of Rs.1000/- which was to be repaid in instalments. Respondent Nos. 2 and 3 were the sureties for Respondent No. 1. On a dispute having arisen between the parties for non-payment of instalments, the matter was referred by the appellant to named arbitrator who passed an award. In proceedings for making the award a rule of the Court, it was held that the award was liable to be set aside on the ground that the reference to the arbitration was not proper as there could not be a unilateral reference without notice to the respondents.

2. On the award being set aside, the appellant filed a civil suit which was held to be barred by time.

3. Learned counsel for the appellant has placed reliance upon the provisions of Section 37 of the Arbitration Act, 1940 and has contended that the entire period taken by it in pursuing the matter before the arbitrator ought to be excluded under Section 14 of the Limitation Act which has been made applicable to the proceedings under the Arbitration Act. Relevant provisions of Section 37 are quoted below :-