The Court's decision was guided by the narrow interpretation of Section 11(6) of the Arbitration and Conciliation Act, 1996, and the legislative policy to minimize court intervention in appointing arbitrators.

JUDGMENT

(Prayer: Arbitration Original Petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 to

(a) Appoint the Presiding Arbitrator in terms of Clause 19 of the PMA Agreement dated 10th April 2012 for the purpose of adjudicating the disputes between the petitioner and the respondent;

(b) Direct the respondent to pay the costs of this proceeding to the petitioner;)

1. Captioned 'Arbitration Original Petition' [hereinafter 'Arb OP' for the sake of convenience and clarity] has been presented in this Court on 08.09.2021 under Section 11 of 'The Arbitration and Conciliation Act, 1996 (Act No.26 of 1996)' [hereinafter 'A and C Act' for the sake of convenience and clarity] with a prayer for appointment of the Presiding Arbitrator.

2. Mr.S.Raghunathan, learned counsel for the petitioner assisted by Ms.R.Sahana and Ms.K.Subhashini, learned counsel of Chennai Law Associates (Law Firm) on behalf of the lone respondent are before this Court.

3. Both aforementioned learned counsel were heard.

4. There is no disputation that the captioned Arb OP is predicated on clause 19 of an agreement which is referred to as 'PMA Agreement' (to be noted, this Court is informed that 'PMA' stands for 'Project Management Agency') dated 10.04.2012.

5. Aforementioned 'PMA agreement' dated 10.04.2012 shall hereinafter be referred to as 'primary contract' and 'clause 19' thereat shall be referred to as 'arbitration agreement' / 'arbitration clause' for the sake of convenience and clarity.

6. Aforementioned clause 19 i.e., arbitration clause reads as follows:

19. Arbitration

(a) It is hereby agreed between the parties that the project shall be executed in the manner and form outlined in this Agreement. If any difference or dispute of any kind whatsoever arises between the parties in connection with or arising out or or relating to or under this Agreement, the parties shall promptly and in good faith negotiate with a view to its amicable resolution and settlement. In the event no amicable resolution or settlement is reached within a period of thirty (30) days from the date on which the above mentioned dispute or difference arose, such dispute or difference shall be referred to a panel of arbitrators. The panel of arbitrators shall consist of three persons. Each party hereto shall appoint one arbitrator and the two arbitrators so appointed shall together appoint the third arbitrator, who shall function as the presiding arbitrator. The seat of arbitration shall be Chennai and the arbitration shall be conducted in the English language. The Arbitration and Conciliation Act 1996, shall govern Arbitral proceedings.

(b) The existence of any dispute or difference or the initiation or continuance of the Arbitral proceedings shall not postpone or delay the performance by the parties of their respective obligations under or pursuant to this Agreement. Further, this Agreement shall remain subsisting and operative furing the Arbitral proceedings and no payment due and payable to either party shall be withheld except the payment in dispute, if any.

(c) The Courts of Chennai alone shall have jurisdiction with respect to arbitration or any other dispute.'

7. Aforementioned arbitration clause in primary contract serves as an arbitration agreement between the petitioner and respondent i.e., arbitration agreement within the meaning of Section 2(1)(b) read with Section 7 of A and C Act.

8. Primary contract is inter alia for design, consultancy and project management for a 'Common Effluent Treatment Plant' ['CETP' for the sake of convenience and clarity] at a place known as Kasipalayam. This Court is informed that CETP is 4.4 MLD capacity and estimated costs is Rs.12.08 Crores. This Court is informed that MLD is a unit of measurement/unit. It is not necessary to dilate any further on these aspects of the matter as there is no disputation or disagreement between the parties about the existence of arbitration agreement i.e., clause 19 of pri