- (1.) The parties to the proceedings entered into an agreement on 19-1-1996 whereby the petitioner was appointed as Commissioning Agent to promote the sale of the product of flush doors; a product of the opposite parties in various divisions including Faizabad, Lucknow, Gorakhpur, Varanasi, Allahabad, Azamgarh, Bareilly and Kanpur etc. This agreement was valid for a period up to 31-3-1997. The agreement was extended for a period ending 31-3-2002 vide agreement dated 18-10-1996. There is Arbitration Clause in the agreement, which is as follows : "14. That in case of any dispute arises, the same shall be referred to the sole arbitration of the Managing Director, Garhwal Mandal Vikas Nigam Ltd. 74/1 Rajpur Road, Dehradun, U. P. whose decision shall be final and binding on the both the parties."
(2.) The aforesaid agreement was executed in Dehradun which was in Uttar Pradesh on the date of the execution of the agreement.
(3.) A dispute arose between the parties. On 5-1-2000, the petitioner made a written request for making a reference to the arbitrator for decision. This letter was addressed to Garhwal Mandal Vikas Nigam through its General Manager and the Managing Director, Garhwal Mandal Vikas Nigam. Instead of entering into the reference the opposite parties conveyed to the petitioners firm that no amount is due to the petitioners firm. On 3-10-2001, the petitioner moved an application under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter to be referred as Act). Admittedly the General Manager (Administration) Garhwal Mandal Vikas Nigam referred the matter for arbitration to the Managing Director on 19-2-2002. The petitioner filed objection under Section 13(2) before the Arbitrator and conveyed to the Managing Director working as Arbitrator that in the absence of the reference of the dispute to the Arbitrator by the General Manager, Garhwal Mandal Vikas Nigam within the prescribed period, the petitioner had filed an application under Section 11 (6) of the Act for appointment of the Arbitrator before the Lucknow Bench of Allahabad High Court.;