The parties to an arbitration agreement can agree to submit the factum of a contract for the decision of the arbitrators.

JUDGMENT - 1. The present revision is directed against the judgment in Civil Appeal No. 47 of 1963 by the Extra Assistant Judge, Akola, whereby he confirmed the decree in Civil Suit No. 24 of 1962 passed by the Civil Judge (Senior Division) Akola upon an application made to that Court under the provisions of the Arbitration Act.

2. The applicant herein was arrayed as original defendant and was a member of the M. P. Commercial Exchange, Akola. He entered in certain forward delivery contracts in cotton seed with the respondent Bhagwandas, the original plaintiff, for and between the period of July 14, 1961 to October 12, 1961. Certain other transactions between them ranging from October 13, 1961 to November 20, 1961 also took place.

3. From the records it transpires that some statement which was produced during the trial and marked as Ex. 47, was the basis of the claim against the present applicant in this revision - Ex. 47 is a statement which appears to have been admitted before the arbitrators by this applicant, though before the trial Court in these proceedings he tried to raise a plea that that was not the final settlement of account and was never intended to be acted upon. It does appear that the opponent Bhagwandas, basing his claim in this document, under which he claimed an amount of Rs. 5625, issued a notice dated November 24, 1961 to the address of the present applicant. That notice, which was sent by registered post, was returned to him with an endorsement that it was refused by the addressee.

4. Thereafter on December 7, 1961, the opponent applied to the President, M. P. Commercial Limited Exchange, Akola of which this applicant was admittedly a member and as such bound by its bye-laws. He stated in that application that he had to recover an amount of Rs. 5,625 from Shri Chouthmal Nathuram Joshi. He further stated that he had given the notice asking him to appoint an arbitrator, but he refused to accept the same. He had already submitted the statement of account to support his claim. Along with this he also filed a notice before the President of the Exchange. On December 14, 1961, the Chairman under the by-laws of the Exchange, drew a reference deed, that document has been properly exhibited on record, both of the arbitration as well as in the trial Court. By that deed of reference, the matter was referred to two arbitrators named therein. It specifically authorised the arbitrators to decide and settle the matters in dispute under the bye-laws of the Exchange.

5. It further appears that thereafter these two arbitrators entered upon the reference and sittings were held in the Exchange office itself. The order-sheets of the arbitration are produced at Ex. 66 in the trial. Statement of this applicant is recorded on December 16, 1961. To him the claim was straightway put up by the arbitrators. The statement of the applicant clearly shows that he was given every opportunity to make his say regarding the claim of the opponent. It is a detailed statement wherein the questions and answers have been written. The statement is duly signed by the present applicant. Thereafter the matters went on before the arbitration and it appears that the present applicant took a somersault on December 31, 1961 and left the proceedings and tried to challenge the jurisdiction by issuing a notice through counsel to the arbitrators. That notice was also taken into account by the arbitrators as is evinced by the order sheet of January 4, 1962. On that day, after giving full consideration to the claim and the documents as well as the statement of the applicant, the arbitrators made an award under their own signatures to the extent of Rs. 4,665.

6. All these papers including the reference deed (Exh. 91) are duly produced in the Court when the application was made under provisions of the Arbitration Act for making the award the rule of the Court.

7. During the trial this applicant filled his objections and tried to raise technical pleas which are reflecte

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