Unilateral appointment of an arbitrator is impermissible in law, and an independent arbitrator is required to be appointed.

JUDGMENT

Prateek Jalan, J. (Oral)--These two petitions arise out of arbitration proceedings which are in progress between the parties under a Contract Agreement dated 07.07.2014 [hereinafter, "the Contract"] by which The Press Trust of India Limited [hereinafter, "PTI"] entrusted M/s Gupta Bros. (India) [hereinafter, "GBI"] with civil works at its office building in Jaipur.

2. GBI has filed O.M.P.(T)(COMM.) 92/2022 for termination of the mandate of the learned sole arbitrator and PTI has filed O.M.P.(MSIC.) 16/2022 for extension of the mandate. As the result of each petition is thus dependent on the result of the other, the petitions have been heard together and are disposed of by a common judgment.

O.M.P.(T)(COMM.) 92/2022

3. The Contract contains an arbitration clause [Clause 82.1]. The relevant part of the arbitration clause reads as follows:

"82.1 Settlement of Disputes by Arbitration (other than mentioned in 82.2 below:

Except where otherwise provided in the CONTRACT any question, dispute or difference that shall arise between OWNER on the one hand and the CONTRACTOR on the other hand as to the construction, intent, meaning or effect or the CONTRACT DOCUMENTS, drawings, specifications, estimates or any one of them or as to any further DRAWINGS to be prepared or as to the application of the SCHEDULE OF RATES, to the measurements taken or as to the materials or the quality thereof or as to execute the same whether arising during the progress of WORK, or within six (6) months of completion or abandonment thereof or as to any matter o: thing, whether of the nature aforesaid or otherwise, however, arising out of or in any way relating to or connected with the CONTRACT then EVERY SUCH QUESTION, DISPUTE OR DIFFERENCE (except where otherwise herein expressly provided) shall be referred to a SOLE ARBITRATOR to be appointed by the parties by mutual consent within one (1) month from the date of notice of either partly requiring an arbitrator to be appointed or resolving such disputes. In the event of the parties being unable to agree to a sole arbitrator within the specified time, the sole arbitrator shall be appointed by the CHIEF EXECUTIVE OFFICER of the OWNER within one (1) month from the date of request made to him in this behalf by either party. Such submission shall be deemed to be a submission to arbitration within the meaning of the INDIAN THE ARBITRATION AND CONCILIATION ACT 1996 or any statutory notification thereof." (Emphasis Supplied.)

4. Disputes having arisen between the parties, GBI invoked the arbitration clause by a communication dated 16.05.2018 addressed to the Chief Executive Officer [hereinafter, "CEO"] of PTI. As the parties to the Contract had failed to mutually agree upon the name of the sole arbitrator, GBI requested the CEO to act in terms of Clause 82.1 of the Contract.

5. A letter dated 13.06.2018 by the Chief Administrative Officer [hereinafter, "CAO"] of PTI addressed to the Managing Partner of GBI, stated as follows:

"This is in response to and continuation of your letter dated May 16, 2018 to the Chief Executive Officer, Mr. Venky Venkatesh requesting for appointment of arbitrator in terms of clause 82.1 of the Works Contract for "Civil Structural, Architectural, Electrical Installations, Fire Protection/Detection Systems and Elevators Works" for the PTI office at Plot No. 5-B, Jhallan Doongri Institutional Area, Jaipur vide Letter of Award No. CAO-1057/14 dated June 16, 2014.

I have been instructed to inform you that as per your abovesaid notice subsequent to invoking the `Arbitration', the matter is being referred to arbitration as mandated in the said clause. We hereby appoint Ms. Sangeeta Sondhi, Advocate, having her office at C-633, New Friends Colony, New Delhi, as the sole arbitrator to adjudicate on the dispute in terms of the Works Contract. The date, time and venue of the arbitration proceedings shall be communicated by the arbitrator." (Emphasis Supplied.)

6. The learned arbitrator thereaft