JAGDISH PRASAD AGARWAL Vs. CIMMCO BIRLA LIMITED

JUDGEMENT

(1.) This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking,a limited relief in terms of clause 90.1 of the Contract whereby parties agreed that all questions of disputes shall be referred to sole arbitrator appointed by the President of respondent-Cimmco Biria Ltd whereas arbitrator has been appointed by Executive Director & Chief Operation Officer.

(2.) The letter dated 21.9.2000 shows that Mr.H-S.Basur, Executive Director & Chief Operation Officer informed the petitioner about the appointment of the Arbitrator in the following terms;-

(3.) Once the parties enter into an agreement spelling out covenants in specific and categorical terms, it is not open to any of the parties to deviate from those terms even in the matter of appointment of arbitrator as reposition of faith in the integrity, impartiality and fairness either of the Arbitrator or the authority vested with power to appoint the arbitrator is the core of such an agreement. Any amount of infraction of such a term of the agreement vitiates the appointment of arbitrator. As the Arbitrator cannot transverse beyond the terms of the agreement whenever reference of disputes is made to him so is the position as to the appointment of arbitrator in case there is specific stipulation that a particular person shall have the authority to appoint an Arbitrator.