An arbitrator has jurisdiction to decide a dispute if the arbitration agreement is broad and includes all disputes arising out of the contract.

1. By this petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short “the said Act”), the petitioner has impugned the arbitral award dated 8th August 2012 made by the learned arbitrator thereby allowing some of the claims made by the respondent. The petitioner herein was the original respondent whereas the respondent herein was the original claimant in the arbitral proceedings. Some of the relevant facts for the purpose of deciding this arbitration petition are as under:-

2. Sometime in the year 2007, the petitioner through their Architects, G.D. Sambhare & Co. invited tenders for the work of construction of Club House, Swimming Pools, Health Spa, Guest Rooms, Mediation Centers and Convention Halls on Gat No. 496 at Village-Bhuvan, Off Kolad, Taluka Mangaon, District Raigad. On 24th September 2007, the respondent submitted their bid for the said work and thereafter, revised and re-submitted the bid for an aggregate tendered amount of Rs.14,64,49,410/-. The said bid submitted by the respondent was accepted by the petitioner on 12th October 2007. The time period stipulated for completion of work was 12 months inclusive of monsoon. The construction activities were to be commenced at site from 12th October 2007 and the stipulated date of completion of work was 11th October 2008.

3. It is the case of the petitioner that the respondent failed to complete the work in all respects by April 2009 and completely stopped work at site from 30th April 2009 and had accordingly abandoned the work. It is the case of the petitioner that the respondent had carried out various defective work which had not been rectified by the respondent in accordance with the terms of the contract. On 11th August 2009, the petitioner issued a show cause notice to the respondent calling upon the respondent to show cause as to why the contract should not be terminated in view of the alleged abandonment of work by the respondent. The respondent, however, did not respond to the said notice nor took any steps to execute the balance work of the contract.

4. The respondent through their advocate's notice demanded a sum of Rs.1,97,05,428/- along with interest thereon @ 30% p.a. totalling to Rs.3,13,97,099/- and invoked arbitration agreement. The petitioner, thereafter, terminated the contract and called upon the respondent for taking joint final measurements of the work. On 15th July 2009, the petitioner also informed the respondent about the amount alleged to be due to the petitioner. The petitioner through their advocate's letter dated 13th July 2009 furnished a list of proposed arbitrators to the respondent. On 13th August 2009, the respondent agreed to the nomination of former Judge of this Court as a sole arbitrator out of the names suggested by the petitioner. The petitioner accordingly appointed a former Judge of this Court as agreed by both the parties as a sole arbitrator by letter dated 17th August 2009. It was the case of the petitioner that by the said letter, the learned arbitrator was appointed to adjudicate upon the specific claims as referred in the letter of the respondent and also the counter claim of the petitioner.

5. On 29th August 2009, the petitioner conveyed about the appointment of the learned arbitrator to the respondent. It is the case of the petitioner that even in the said letter dated 29th August 2009, the specific terms of reference of the arbitration was conveyed to the respondent. The learned arbitrator accepted the reference made and called a preliminary meeting for issuing directions to the parties.

6. Pursuant to the liberty granted by the learned arbitrator, the respondent submitted statement of claim with the documents. It is the case of the petitioner that in the said statement of claim filed by the respondent, the respondent included various other claims which were not forming part of the terms of reference. On 26th February 2010, the petitioner filed their written statement with copies of docum