- (1.) THIS is an application filed under Sec. 11(6) of the Arbitration and Conciliation Act, 1996 with the request/ prayer for appointment of an arbitrator. The prayer is reproduced as under : - - "It is, therefore most respectfully prayed that Your Lordships may be graciously pleased to appoint sole arbitrator other than an employee of opposite party SAIL/BSI to arbitrate upon the dispute and claims in the ends of justice. And/Or Graciously be pass any order/orders deem fit in the matter."
(2.) THERE is no dispute that a contract agreement between the parties came to be executed. There is also no dispute that between the parties, there is an arbitration agreement which is in the form of Clause 18 of the Conditions of Contract. The relevant extract of Clause 18, in so far as it pertains to our case, is reproduced hereinbelow. It reads thus : "18. ARBITRATION CLAUSE. As per existing guide lines on date. Except where otherwise provided for in the contract all questions, of dispute or difference whatsoever arising out of relating to or in connection with the contract shall be referred to the Sole Arbitrator to be appointed by the Managing Director, Bokaro Steel Plant, Steel Authority of India Ltd. There will be no objection if the sole arbitrator so appointed is an employee of Bokaro Steel Plant, Steel Authority of India Ltd. the sole arbitrator to whom the matter is originally referred being transferred or vacating his office or arbitrator or being unable to act for any reason, Managing Director as aforesaid may appoint another person to act as sole arbitrator on the request of any of the parties to arbitration. Such person shall be entitled to proceed with the reference from the stage at which it was left by his predecessor. Subject as aforesaid the provisions of Indian Arbitration Act, 1940 or any statutory modification or reenactment thereof and the rules made thereunder and for the time being in force shall apply to the arbitration proceeding under this clause. It is a term of the contract that the party invoking arbitration shall specify the dispute or disputes to be referred to arbitration under this clause together with the amount claimed in respect of each such dispute. The said sole arbitrator may from time to time with consent of the parties enlarge the time for making and publishing the award."
(3.) APPARENTLY , invoking the aforesaid Clause 18, the petitioner sent a communication on 5.12.2001 to the respondent, inter alia, referring to the entire gamut of the disputes between the parties and after raising certain issues, a specific request for appointment of an arbitrator under Clause 18 (supra), was made. This request was contained in para 4 of the aforesaid letter No. BFW/2001 -02/BSI/29 dated 5.12.2001 which reads thus : - - "Accordingly, we do herewith invoke the jurisdiction of arbitration within the meaning of Clause 18 of the important instructions/conditions of purchase order and request you to please appoint sole arbitrator to adjudicate the matter of dispute and differences." The respondent acting pursuant to the aforesaid request issued a communication dated 27/28th December, 2001 wherein, while referring to the aforesaid letter dated 5.12.2001 sent by the petitioner and in exercise of the powers vesting in him under Sec. 18 (supra), the Managing Director, (SAIL) nominated one Sri K.P. Choudhary, ED (Projects) to act as the Arbitrator in the case. Relevant extract of the aforesaid communication dated 27/28th December, 2001 reads thus : - - "Nevertheless vide letter No. BFW/ 2001 -02 BSI/29, dated 5.12.01 you have desired and communicated to M.D., SAIL/BSL for referring the purported disputes and differences to the Arbitration under Clause 18 of the above Purchase Order. As per Clause 18 of the purchase order, M.D., SAIL/BSL is empowered to nominate and appoint sole arbitrator for adjudication of disputes and differences emerging out of the above purchase order. Accordingly in response to your letter dated 5.12.2001 our MD has been pleased to nominate and declare Sri K.P. Choudhary, ED (Project) to act as the Sole Arbitrator in the instant matter for adjudicating the purported disputes and differences arising out of the above purchase order," ;