An Arbitration Agreement must provide for a sole Arbitrator or an odd number of Arbitrators, and the Arbitrators are required to state the reasons upon which an arbitral award is based.

( 1 ) THIS appeal is directed against the Judgment and Order dated 17th November 1998 passed by the learned single Judge of this Court in A. P. No. 53 of 1998 whereby the application filed by the Respondents for setting aside the award was allowed and the award was set aside by the learned single Judge. The Respondents in the application for setting aside the Award had sought a declaration that the arbitral award made and published by the two Arbitrators was void and invalid, unenforceable and not binding on the parties and had accordingly sought the relief of setting aside of the said award and for passing of the consequential orders. The award in question appears to have been passed by the Arbitrators, Sri S. S. Jain and Sri P. K. Khaitan. It appears to have been passed on 6th October, 1996. How did the Arbitrators come to be appointed in the very first place, whether there was in existence any arbitration agreement providing for their appointment, and whether any reference had been made to the Arbitrators of the disputes and differences between the parties are all matters which themselves are not free from controversies, doubts, disputes and differences. Since we propose to dispose of this appeal on two pure questions of law, we need not dilate on these disputed questions except to briefly refer the circumstances under which the aforesaid two persons ultimately came to pass the aforesaid Award dated 6th October, 1996.

( 2 ) IT appears that a Memorandum of understanding was executed between the parties on 24th June, 1996 whereby Sri S. S. Jain was nominated as the person to resolve the disputes and differences between the parties for his mediation and settlement by way of arrangement, not being an award of an Arbitrator, but having binding effect as such morally or otherwise on all parties. This part of the agreement is reproduced as under :"and whereas parties being desirous of having the disputes and differences resolved, agreed to refer the matter for my mediation and settlement by way of an arrangement, not being an Award of an Arbitrator, but having binding effect as such morally or otherwise on all parties. "

( 3 ) IN the same agreement the parties are supposed to have agreed that in case of any dispute or difference relating to any term etc. the same would be referred to Sri S. S. Jain whose decision shall be binding and final on all concerned. This is contained in the following part of the agreement which reads thus :"in case of any difference or disputes relating to any term, meaning, scope, extent, interpretation or otherwise of this MOU or any part hereof, the same would be referred to the undersigned whose decision shall be final and binding on all concerned. "

( 4 ) IT appears that on 29th September, 1996 the parties sent a communication to both Sri S. S. Jain and Sri P. Khaitan asking them to become Arbitrators and enter upon the Reference with respect to disputes and differences between the parties. This communication is reproduced as under : dated : 29 September, 1996"sri S S Jain, P. Khaitan dear Sir (s)a memorandum of understanding was arrived at between all of us and singed by all before you Sri P. K. Khaitan and was witnessed by you Sri S. S. Jain. The same was signed with condition by all concerned and as such could not be implemented. We have now tabulated our points of differences arising out of and/or concerning and/or in extension of the said MOU and shall handover our respective papers in this regard within one hour of handing over this letter to you. Save as what appears in the said respective sheets, the said MOU is final, binding, agreeable and shall be implemented by us after your Award in respect of the differences now referred, which we hereby do to you. The said Mou will be implemented in accordance and/or coupled with your award as aforesaid. We hereby agree to abide by your Award which shall be final and binding on all of us. You shall have summary powers. We request you t