( 1 ) THIS is an application for making the award of Shri D. R. Dhamija, Advocate dated 18th September, 1980 a rule of the court. The respondents have filed objections to the award.

( 2 ) BRIEFLY the facts are that Puran Dutt Sood of Ludhiana-respondent No. I took a chit of the value of Rs. 10,000. 00 from M/s. Lovely Benefit Chit Fund and Finance (P) Ltd. , the petitioner company and agreed to pay instalments of Rs. 200. 00 each for 50 months as contribution. Respondent No. 1 gave a bid in an auction held by the petitioner on 16th August, 1974 and received Rs. 6000. 00 from it and agreed to forego Rs. 4000. 00 commission dividend discount etc. in accordance with Rules and Regulations. He executed the agreement dated 3rd October, 1964 in favour of the petitioner and agreed to pay Rs. 200. 00 per month to the petitioner against the said chit of Rs. 10,000. 00. Ganesh Parkash Gupta and Surinder Singh Sood, both of Ludhiana respondents 2 and 3 executed surety bond as guarantors for punctual payment of monthly contribution by respondent No. 1. The agreement contained the arbitration clauses for reference of the disputes to the sole arbitration of Bakshi Harbans Singh Puri, Advocate.

( 3 ) A sum of Rs. 3432. 62 as balance of the chit, Rs 1130. 00 as dividend, Rs. 340. 00 as interest and Rs. 25. 00 as incidental charges total Rs. 4927. 62 remained due to the petitioner and disputes arose between the parties. The petitioner on 15th June, 1968 filed an application under Section 20 of the Arbitration Act for filing of the arbitration agreement in court and reference of the disputes to the said arbitrator. The respondents contested the application on various grounds and the trial court by judgment dated 24th November, 1969 dismissed the applicationn the ground that respondents 2 and 3 were not parties to the agreement containing the arbitration clause. On appeal the Additional District Judge by judgment dated 4th November, 1970 partly set aside the judgment of the trial court and ordered for reference of the disputes between the petitioner and respondent No, I to the arbitration of Bakshi Harbans Singh Puri. Advocate, the arbitrator named in the agreement. The petitioner aggrieved by the order of the first appellate court further filed Civil R. evision No. 174 of 1971 under Section 115 of the Code of Civil Procedure. S. Rangaranjan, J. by judgment dated 4th February, 1975 di-rected that all disputes inter se between the petitioner on the one side and respondent No. 1, principal debtor and as well as two sureties, respondents 2 and 3 on the others should be referred to the arbitration of the said arbitrator.

( 4 ) BAKSHI Harbans Singh Puri, Advocate had expired before entering upon reference. This court by order dated 16th August, 1978 therefore with the consent of the parties referred the disputes to the sole arbitration of Shri D R. Dhamija, Retired Additional District Judge, Delhi. Parties were directed to appear before him on 11th September, 1978 at 4 P. M. in the High Court Bar Association. The arbitrator was granted four months, from the date of entering upon reference, to make his award. In an application (C. M. No. 2303 of 1979) by order dated 25th April, 1980 time for making of the award was extended till 24th August, 1980.

( 5 ) ON 18th September, 1980 Shri D. R. Dhamija, arbitrator made an ex parte award. The arbitrator to the award said, "i award to the claiment company against the three respondents Rs. 10,742. 30 which includes the principal amount of Rs. 3,432. 90 dividends forfeited, incidental expenses, interest at 12% pa. on the principal amount upto 18th September, 1980, costs of arbitration proceedings including fee, miscellaneous expenses, arbitration fee and stamp for the award. The principal amount of Rs. 3,432. 60 shall further carry interest at Rs. 12% p. a. from the date of award till its execution".

( 6 ) THE petitioner-clainant made the above application under Sections 14 and 17 of the Arbitrat