VEER CONSTRUCTION CO Vs. SARASWATI ENCLAVE

JUDGEMENT

(1.) The Special Conditions of Contract has a clause bearing No. 60. It reads :

(2.) . Before I venture to answer the question posed, let me say, by way of preliminaries, that though some judgments do lead one to believe that the so-called arbitration clause should be strictly construed, I do feel that such a clause cannot be treated as a class apart. Rather, it too has to be construed like any other clause of the Contract with a view to fathom the intention of the parties. To gather such an intention the court would bank upon the particular words used. if the words are clear, precise and unambiguous so much the better. But then, the form of the clause may not be that material for, courts prefer to look to the substance. In short thus, it is the discovery of the intention which matters.

(3.) . An arbitration agreement, as we know, arises either by reason of an agreement between the parties or on the foundation of certain statutes. In order to constitute a valid arbitration agreement of the former type, among other things, there should be a valid agreement, the terms of which are reduced to writing, and the parties thereto should be ad idem. It matters not whether the arbitrator is named therein or not.