(1.) THE civil miscellaneous appeal is filed against the judgment and decree dated 30-09-2009 made in Arbitration Original Petition No.23 of 2005 passed by the Principal District Court, Coimbatore confirming the award of the sole-arbitrator dated 23-09-2004. THE respondent submitted a tender for the work of rehabilitation of contour canal from L.S.0.000KM to 25.490KM in Pollachi Taluk, Coimbatore District on 19-12-1997 to the Superintending Engineer, PWD/WRO Parambikulam Aliyar Basin Circule, Pollachi " 642 003. THE said tender was accepted on 11-05-1998 and an agreement dated 23-05-1998 was also executed between the respondent and the appellant herein. As disputes arose between the parties, the dispute was referred to the Sole Arbitrator viz., one Thiru.K.K. Alukkusamy, the Superintending Engineer of the appellant department in terms of the arbitration agreement. On consideration of the claims, the Arbitrator passed the following award dated 23-09-2004: "An award is passed in favour of the claimant for Rs.2,13,96,134/- Rupees Two Crores, Thirteen Lakhs Ninety Six Thousand One Hundred and Thirty four only) directing the respondents to pay the same together with interest at 12% /annumfrom 23-09-2001 till this date, except on interest awarded on late interim payments and delayed price adjustment payments, and the entire awarded amounts including interest awarded at 12%/annum from this date till date of payment or realization. THE entire awarded amount shall be paid within 2 months of date of receipt of copy of the award and interest will not run for this grace period for enabling the respondents to make the payment. If the payment of the entire awarded amount is not made within 2 months specified, interest will run for that period also continuously." Not satisfied with the award, the appellant filed the arbitration original petition before the Principal District Judge, Coimbatore and the award was confirmed by the judgment and decree dated 30-09-2009. As against the said judgment and decree, the present appeal has been filed.
(2.) AT the outset, the learned counsel appearing for the appellant would submit that both the award as well as the judgment and decree of the learned Principal District Judge, Coimbatore are questioned only on the ground that if the value of the contract exceeds Rs.50 millions and in case any dispute or difference arises between the employer and the contractor, it shall be referred to an Arbitral Tribunal which shall consist of three arbitrators. In this case the value of the contract is above 50millions, and hence the dispute ought to have been referred to the above Arbitral Tribunal. On the other hand, it was referred to only a Sole Arbitrator, and therefore, the appointment of an sole-arbitrator is contrary to the agreement and consequently, he would not have jurisdiction to entertain any dispute as a necessary corollary the award passed by the Sole Arbitrator is ex-facie illegal.
(3.) AS per Clause 25.3(a), both the appellant, the employer and the respondent, the domestic contractor have agreed to settle the disputes/differences between the parties in accordance with the Arbitration and Conciliation Act, 1996. Section 11 of the Arbitration and Conciliation Act also gives liberty to the parties to agree on a procedure for appointing the arbitrator or arbitrators, which includes the number of Arbitrators as well.