( 1 ) THIS Arbitration Application is filed under Section 11 of the Arbitration and conciliation Act, (for short "the New Act") read with Para 2 of the Scheme for appointment of Arbitrators framed by the chief Justice under sub-section (10) of section 11 of the Arbitration and conciliation Ordinance, 1996 (hereinafter referred to as "the Scheme") seeking appointment of an independent Arbitrator for adjudicating the disputes that arose between the parties in connection with the termination of the services of the applicant under Clause 7 of the Contract of Service entered into between him and the respondent-Company on 31-1-1995.

( 2 ) THE facts leading to filing of this application, in brief, are: the applicant was appointed in the managerial Cadre of the respondent-Company on 7-11-1979 at their Pune branch. On 16-7-1990 he was posted as branch Manager at the Bhopal Branch. On 31-1-1995 he was promoted to the Senior managerial Cadre in the respondent-Company and on the very same day i. e. , on 31-1-1995, a Service Contract was executed by and between the parties. Clause 7 thereof provides for settlement of all disputes between the parties by Arbitration, which reads thus:"7. In case any dispute or difference shall arise between the parties hereto with respect to their respective rights or liabilities or otherwise under this agreement or as to whether the same has been determined, the same shall be referred to arbitration in accordance with the provisions of the Indian arbitration Act, 1940 or any law relating to arbitration for the time being in force in India. The venue for such arbitration proceedings shall be at Pune. The parties to this agreement respectively undertake to abide by and perform the award that may be made in such arbitration". On 14-3-1997 the applicant was transferred to Hyderabad Branch. While he was working at Hyderabad, he went on leave on medical grounds from 24-5-1999. After returning from medical leave, the applicant appears to have written a letter on 9-10-1999 to the Management of the respondent-Company stating that certain confidential information was being leaked, out by some persons in the Company to rival Companies resulting in losses to the respondent-Company. On the very same day he addressed another letter, wherein he stated, inter alia, that in the demoralised situation that was prevailing he was unable to lead the sales/service team, therefore, he was taking leave on medical grounds. Then the respondent-Company terminated his services by an order dated 20-10-1999. On 30-10-1999 the applicant got issued a lawyer s notice disputing the validity of the termination order and requesting withdrawal of the same, failing which he would be constrained to take appropriate legal action making the respondent-Company liable for the costs.

( 3 ) THE respondent-Company got issued a reply notice through their Lawyers, oh 22-11-1999 justifying the termination order. The applicant then got issued another notice through his Advocate on 29-11-1999 calling upon the respondent-Company either to reinstate him into service within seven days from the date of receipt of the said notice or pay a sum of Rs. 62,72,076. 00 as compensation. It appears that the said notice, which was sent by Registered Post, acknowledgment Due, was returned by the postal Authorities with an endorsement "not claimed". However, on 1-12-1999 the respondent-Company addressed a letter to the applicant enclosing a cheque for rs. 49,702/- towards settlement of the applicant s claim in respect of medical bills, lta, proportionate tour claims and conveyance expenses etc. The applicant, without accepting the said payment, got issued a notice, on 10-12-1999, through his Lawyer invoking the Arbitration clause and nominating Sri J. P. Roy and sri Anupam Das as the Arbitrators on his side and calling upon the respondent-Company to appoint Arbitrators on their side to settle the dispute. On 17-12-1999 the applicant got issued another legal