Judgment

R.V. Raveendran, J. —

1.Leave granted. Heard the learned counsel for parties.

2.The appellant entered into a collaboration agreement dated 23.7.1986 with the respondent for setting up of a project through a company to be jointly promoted by them. Clause 36 of the agreement provided for reference of all disputes and differences arising out of or in relation to the said agreement to an arbitral tribunal consisting of three members that is one to be appointed by each party and an umpire to be appointed by the two arbitrators.

3.Certain disputes arose between the parties and the appellant by notice dated 19.3.1997 appointed its arbitrator and called upon the respondent to appoint his arbitrator. As respondent failed to comply, the appellant filed a petition under section 11(4) of the Arbitration & Conciliation Act, 1996 (‘Act’ for short) on 13.6.1997 in the court of the Principal Civil Judge, Senior Division, Chandigarh (a designate of the Chief Justice of Punjab & Haryana High Court and hereinafter referred to as the ‘Designate’).

4.The said Designate by Order dated 16.2.2002 dismissed the petition holding that appointment of arbitrator was not called for as the matter had already