IMPORTANT POINT
The main legal point established in the judgment is the interpretation of the existence of an arbitration agreement between the parties, as provided in the Memorandum of Understanding (MOU) under Clause 8. The court analyzed the language of the MOU to determine the presence of an arbitration clause and its applicability to the dispute.

ORDER :

1. This is an application under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of Arbitrator.

2. The facts, necessary for adjudication of this arbitration application are that the applicant is a Company registered under the Companies Act, 1956 which is currently involved in the implementation of a government project for skilling of 1200 rural poor youth in various sectors in the State of Chhattisgarh under the Deen Dayal Upadhyay Grameen Kaushalya Yojana ("DDUGKY"). The respondent is the nodal agency established with the aim of promoting skill employment and entrepreneurship by implementing schemes of the Ministry of Rural Development ("MoRD"). As a part of its major action, it established skill training mechanism by involving training partner agencies to execute the training program across the State of Chhattisgarh. On 25.09.2014, the Government of India had initiated a scheme under the name of Deen Dayal Upadhyaya Grameen Kaushalya Yojana ("the Scheme") under the Ministry of Rural Development ("MoRD") tasked with the dual objectives of adding diversity to the incomes of rural poor families and cater to the career aspirations of rural youth. This is a national level flagship program of MoRD and the State is designated as a nodal agency to carry out this program as per the norms laid down in Standard Operating Procedure ("SOP").

3. The respondent is the nodal agency for implementation of the Scheme in Chhattisgarh, as per the norms laid down in the SOP. It is entrusted with execution, monitoring, and supervision of the Scheme. The applicant is duly registered with the MoRD to implement the Scheme. As per the Scheme, the Central Government decides a number of poor candidates to be trained in a year, which is called as "Target" and based on the same, cost of training is decided and budget is allocated for the Project. The total target decided by the Central Government is distributed amongst States to start the work and the nodal agencies invites letter of interest from various Project Implementing Agencies (for short, the PIAs). The PIAs from across the country submit their interest for the project in the format as prescribed - which is known as the Project Application, and thereafter, Project Approval Committee ("PAC"), constituted by State Government allocates the target to successful PIA and issues sanction letter(s) to that effect. After issuing the sanction letter to the concerned PIA, the nodal agency in the State executes a Memorandum of Understanding ("MOU") with the PIA for the proposed project work, thereby stating the necessary terms and conditions therein. Thereafter, a Project Commencement letter is issued to the PIA. The PIA is required to submit a Due Diligence Report ("DDR") for a centre where the PIA intends to commence training along with full details, including but not limited to, the staff recruited, photographs of the infrastructure, compliance details etc. in line of the SOP. This DDR is thoroughly inspected by nodal agency team, discrepancies are pointed out and the PIA is required to rectify and correct the defects and/or discrepancies and thereafter, the report is approved. Once the DDR is approved, PIA commences mobilization of rural poor candidates and initiates the training, and thereafter placements activities. A bare perusal of the aforesaid operating procedure would reveal that the success of the project fundamentally depends upon the willingness of the candidates to undergo training and relocate, if necessary, for placements.

4. As per the terms and conditions of the MOU and the SOP of the Scheme, the nodal agency is required to release 25% of the total cost of project upon execution of MOU. Sometime in 2017, the applicant submitted its Project Application form for training and placement of 1800 candidates (subsequently rightsized to 1200 candidates) under the DDUGKY scheme in various sectors in the state of Chhattisgarh to the respondent CGSRLM which was approved