Mahinder Narain, J. (Oral)

( 1 ) ONLY a short point is involved in this appeal and that is whether in the absence of roject Director, who is to act as an arbitrator or to appoint somebody else as arbitrator, the Chairman-cum-Managing Director can appoint another person to be the arbitrator?

( 2 ) IN the impugned order, it has been accepted that the Chairman-cum-Managing Director can appoint the arbitrator instead of the Project Director as according to a circular issued by the Chairman-cum-Managing Director, the powers exercisable by the Project Director (overseas) are to be henceforth exercised by the Chairman-cum-Managing Director.

( 3 ) APPOINTMENT of an arbitrator is a matter of agreement between the parties. It is not possible for one of the parties to the arbitration agreement to unilaterally change the person who is to act as arbitrator or who is to nominate the person to act as an arbitrator.

( 4 ) COUNSEL for the appellant relies upon the provisions of Section 4 of the Arbitration Act, 1940 (for short, the Act), which is as follows:-

"4. Agreement that arbitrators be appointed by the third party.

THE parties to an arbitration agreement may agree that any reference thereunder

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