1. This is an appeal against an order of the Subordinate Judge, 1st class Ambala, who on 19th March 1970, declined the application of the appellant to set aside an ex parte decree against him both on merits as well as on the ground that the application was barred by time.

2. The decree-holder is Punjab and Pepsu Finance Company Ltd., Ambala Cantt. referred to hereinafter as the Company. Gurdev Singh is stated to have taken a truck on hire-purchase system which, for his alleged omission to pay instalments of the amount due from him, was seized by the Company. In the hire-purchase agreement dated 21st October, 1960. Exhibit DHW 3/1. it is provided that all differences arising between the parties in regard to rights, duties and obligations under the agreement shall be referred to the arbitration of Shri Brij Bhushan Gupta, Advocate. Ambala city who was to settle the same in accordance with the provisions as contained in the Indian Arbitration Act (Act 9 of 1899). First party to the agreement is the company and the second party is Gurdev Singh who is described as son of S. Tara Singh, resident of Kothi No. 45-A, Sector 22, Chandigarh. The third party is the surety, Sudagar Sing