- (1.) The applicant has approached this Court by filing instant arbitration application u/S.11 of the Arbitration And Conciliation Act, 1996 (Act, 1996) for appointment of Arbitrator.
(2.) It is not in dispute that the parties entered into agreement and that contains Clause-23 regarding arbitration if there is any Arbitral Dispute arises from terms and conditions of the agreement executed could be referred to a arbitrator to be appointed by the Chairman-cum-Managing Director any person from amongst the panel of 3 names. Clause-23 relevant reads ad infra- "If any question, difference or objection, whatsoever shall arise in any way, in connection with or arising out of this instrument, or the meaning of operation of any part therefore of the rights, duties or liabilities of either party then, save in so far as the decision of any such matter as herein before provided for and has been so decided, every such matter constitution a total claim of Rs.5,000/- or above, whether its decision has been otherwise provided for and whether it has been finally decided accordingly or whether the contract should be terminated or has been rightly terminated and as regards the right or obligations of the parties at the result of such termination shall be referred for adjudication to a sole arbitrator to be appointed as hereinafter provided. For the purpose of appointing the sole arbitrator referred to above the Chairman-cum-Managing Director will on receipt of notice and prescribed fee from the contractors send a penal of 3 names not below the rank of Superintending Engineer of the Corporation and who shall all be presently unconnected with the contract. The contractor shall on receipt of the names as aforesaid select any one of the persons named, to be appointed as a sole arbitrator and communicate his name to the Chairman. The Chairman shall there upon appoint the said person as the sole arbitrator without delay. The arbitrator shall give reasons forward. Subject as aforesaid the provisions of the Arbitration Act, 1940, or any statutory modification or re-enactment there of and the rule made thereunder and for the time being in force shall apply to the arbitration proceedings under this clause".
(3.) Reply of the present arbitration application has been filed and after taking into consideration the material which has come on record this fact remain undisputed that the arbitral dispute arise from the terms and conditions of the agreement executed between the parties and that deserves to be examined by the sole arbitrator u/S.11(6) of the Act 1996.;