DR. MUKUNDAKAM SHARMA, J.

1. This Order would dispose of the petition filed by the petitioner praying for appointment of an arbitrator under Section 11(6) and (9) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act) in terms of the Arbitration Agreement entered into between the parties.

2. The petitioner is a foreign company incorporated under His laws of China having its office at Hong Kong whereas the respondent no. 1 is a citizen of India and Chairman of respondent no. 2 Shrivastava Group of Companies. Respondent Nos. 3 to 5 are the companies of Shrivastava Group and respondent nos. 6 and 7 are partnership firms carrying on business under the name of Shrivastava Group. The respondent no. 8, also arrayed as party to the petition, is a company formed under the Joint Venture Agreement (for short JVA) between the petitioner and respondent no. 1. The said company was incorporated and registered under the provisions of the Indian Companies Act, 1956. However, during the pendency of the aforesaid proceedings the name of respondent no. 8 was deleted from the array of parties.

3. On 08.09.2003, an agreement of cooperation was entered into between the petitioner on one hand and respondent no.1 on the other hand for the purpose of providing cooperation and also for exports of iron ore from mines belonging to Shrivastava Group. Pursuant to the above agreement, a JVA was executed on 25.09.2003 between the petitioner and respondent no. 1 for the purpose of mining, processing and export of iron are. On 26.03.2004 another JVA was executed between the parties, particularly, to iron out certain controversies in respect of the JVA dated 25.09.2003 . Article 14. 3 of the said JVA, which is an arbitration clause, reads as follows:

"If the parties fail to resolve the matter through mutual agreement, the dispute shall be referred to an Arbitrator appointed by mutual agreement of the two parties. Such Arbitrator shall be a retired High Court or Supreme Court Judge; such arbitration proceedings shall be completed and Award be given within three months of the Arbitrators appointment; the cost of such arbitration would be shared equally by the two parties. The arbitration proceedings shall be in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any subsequent enactment or amendment thereto. The decision of the arbitrator shall be final and binding upon the parties."

4. The stand of the petitioner in the petition is that the whole idea of signing the JVA and constituting a company under the JVA was to promote the business of the petitioner in, trading the iron ore in foreign countries and to secure a firm supply base for international trade for mining, processing and export of iron ore. Consequent thereto on execution of the aforesaid agreement a company under the name and style of Everest Mining & Mineral Pvt. Ltd. was incorporated on 02.06.2004. The petitioner has stated in the petition that Focus Trading Company Ltd., a sister concern of the petitioner company advanced an amount of US $ 450,000 on behalf of the petitioner to respondent no. 3 company towards capital investment on 18.02.2004. Thereafter on 29.07.2004, it is stated that another sister concern of the petitioner, namely, AMJ Marketing paid to respondent no 3 on behalf of the petitioner,. Further amounts of Rs. 51,00,000/-, Rs. 50,00,000/- and Rs. 24,00,000/- totaling to Rs. 1,25,00,000/- to wards interest free deposit for the benefit of the newly incorporated company, namely, Everest Mining & Mineral Pvt. Ltd. respondent no. 8.

It is also the stand of the petitioner that on 20.09.2004 the petitioner was shocked and surprised to receive unwarranted notice for cancellation of JVA from respondent no. 3 on the ground of reduction of FOST price which according to respondent no. 3 had brought about an. alarming situation for the JVA. In the said notice, the petitioner was further informed that Reserve Bank of India had hesitated to c