Parties can resolve disputes through arbitration when they mutually consent, cementing the arbitration process as per the Arbitration and Conciliation Act, 1996.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Appointment of Arbitral Tribunal - Parties agree to reference disputes to arbitration - Petition allowed with appointment of retired Judge as Arbitrator; the Tribunal to adjudicate claims and counterclaims. (Paras 1-4)

(B) Consent of parties - The lack of objection from the respondents to the arbitration process facilitates the appointment of the Tribunal. (Para 2)

Facts of the case:
The Petitioner sought the appointment of an Arbitral Tribunal as per the arbitration clause in the Master Facility Agreement and Supplementary Agreement dated 27.10.2014. The respondents expressed no objection to this process.

Findings of Court:
The court allows the petition for arbitration due to mutual consent and appoints a retired Judge as the Arbitrator to resolve the disputes.

Issues: The primary issue was the agreement of parties to refer disputes to arbitration and the subsequent appointment of an Arbitrator.

Ratio Decidendi: The court emphasized the parties’ agreement to resolve disputes through arbitration, validating the process under the Arbitration and Conciliation Act, especially when both parties consent to the arbitration clause.

Result: Petition allowed and Arbitrator appointed.

Table of Content
1. establishment of arbitration clause. (Para 1)
2. consent to arbitral tribunal formation. (Para 2)
3. authority and fees of the appointed arbitrator. (Para 3 , 4 , 5 , 6)
4. disposal of the petition. (Para 7)

JUDGMENT

Sanjeev Sachdeva, J. Petitioner seeks appointment of an Arbitral Tribunal pursuant to arbitration clause contained in Master Facility Agreement dated 27.10.2014 read with Supplementary Agreement dated 27.10.2014.

2. Learned counsel appearing for the respondents submits that without prejudice to their defence they have no objection to the Arbitral Tribunal being constituted.

3. Since the parties are agreeable to reference of their disputes to arbitration, the petition is allowed.

4. With the consent of the parties and without prejudice to their rights and contentions, Mr. Justice G.S. Sistani (retd), former Judge of this Court (Mobile No. +91 9871300034) is appointed as the Arbitral Tribunal to adjudicate the disputes between the parties. The Arbitral tribunal shall adjudicate the disputes i.e. claims and counter claims, if any, of the parties.

5. The fees of the learned Arbitrator shall be as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

6. The Arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within two weeks of entering reference.

7. The petition is disposed of in the above terms.

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