The main legal point established in the judgment is the interpretation of arbitration clauses in favor of early resolution of disputes through arbitration, emphasizing the purpose of arbitration for speedy dispute resolution.

JUDGMENT

(Prayer: Arbitration Original Petition (Commercial Division) filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 to appoint a sole arbitrator as this Hon''ble Court may deem fit under Section 11(6) of the Arbitration and Conciliation Act, 1996 in accordance with Clause 49(1) of the Special conditions of Contract under Agreement dated 04.10.2013 vide Contract No.TN/IDIPT/PMC/01 to resolve the disputes that have arisen between the petitioner and the respondent.)

This petition has been filed under Section 11 of -the Arbitration and Conciliation Act, 1996- [hereinafter referred to as -A and C Act-] seeking for appointment of an Arbitrator by this Court.

2. The petitioner was appointed as a service provider by the respondent under a contract dated 04.10.2013. The petitioner claims that they acted as a consultant for the respondent.

3. There seems to be a dispute between the petitioner and the respondent under the contract dated 04.10.2013. The petitioner has claimed consultant fees from the respondent. They have sent letters/notices to the respondent calling upon them to pay their alleged dues. Since the claim of the petitioner was not settled, the petitioner had invoked the arbitration agreement in the contract dated 04.10.2013 by its letter dated 03.05.2019. The said letter was not responded by the respondent. One more reminder was also sent on 13.09.2021. Thereafter, since the respondent did not respond, the petitioner-company appointed an Arbitrator through their letter of reference dated 23.5.2022. They had named a former Judge of this Court as their Arbitrator. The arbitration agreement under the contract dated 04.10.2013 is found in clause 49 which is extracted hereunder :

“49. Disputes shall be settled by arbitration in accordance with the following provisions :

1. Selection of Arbitrators Each dispute submitted by a Party to arbitration shall be heard by a sole arbitrator or an arbitration panel composed of three (3) arbitrators, in accordance with the following provisions :

(a) Where the Parties agree that the dispute concerns a technical matter, they may agree to appoint a sole arbitrator or, failing agreement on the identity of such sole arbitrator within thirty (30) days after receipt by the other Party of the proposal of a name for such an appointment by the Party who initiated the proceedings, either Party may apply to International Federation of Consulting Engineers (FIDIC) for a list of not fewer than five (5) nominees and, on receipt of such list, the Parties shall alternately strike names there from, and the last remaining nominee on the list shall be the sole arbitrator for the matter in dispute. If the last remaining nominee has not been determined in this manner within sixty (60) days of the date of the list, FIDIC shall appoint, upon the request of either Party and from such list or otherwise a sole arbitrator for the matter in dispute.

(b) Where the Parties do not agree that the dispute concerns a technical matter, the Client and the Consultant shall each appoint one (1) arbitrator, and these two arbitrators shall jointly appoint a third arbitrator, who shall chair the arbitration panel. If the arbitrators named by the Parties do not succeed in appointing a third arbitrator within thirty (30) days after the latter of the two(2) arbitrators named by the Parties has been appointed, the third arbitrator shall at the request of either Party, be appointed by FIDIC.

(c) If, in a dispute subject to paragraph (b) above, one Party falls to appoint its arbitrator within thirty (30) days after the other Party has appointed its arbitrator, the Party which has named an arbitrator may apply to the [name the same appointing authority as in said paragraph (b)] to appoint a sole arbitrator for the matter in dispute, and the arbitrator appointed pursuant to such application shall be the sole arbitrator for that disput