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Suit No. 885 of 1986, decided on 5th March, 1987.
---S. 20--Appointment of arbitrator--Dispute--Agreement between parties providing for arbitration clause for settlement of dispute to be referred to a sole arbitrator who was to be appointed by their consent--Parties agreeing to a name to act as sole arbitrator--High Court ordered accordingly.
Bilal Khawaja for Appellant.
Qamer Abbas for Respondent.
Date of hearing: 5th March, 1987.
This is an application under section 20 of the Arbitration Act. The plaintiff and the defendant had entered into an agreement which provided the following arbitration clause:-
"19. All claims, disputes and other matters in question arising at any time during or after the execution of the work under this agreement and/or relating to any matter incidental thereto shall be resolved by arbitration to be conducted in accordance with the provisions of Arbitration Act, 1940, as amended. Unless otherwise agreed to by the parties, the CNS shall be Sole Arbitrator for purposes of such arbitration."
There was a dispute between the parties in respect of payments claimed by the Plaintiff. A claim was made by, it which was rejected. In these circumstances the consultancy agreement was cancelled. The parties entered into correspondence but without avail. The plaintiff invoking the Arbitration clause sought concurrence of the defendant in appointing any one of the two person nominated by him to act as Sole Arbitrator. The defendant did not agree. The Plaintiff therefore, filed the present application.
From the arbitration clause it is clear that the disputes were to be referred to arbitration. It further provides that unless otherwise agreed by the parties the CNS (Chief of Naval Staff) shall be the sole arbitrator, for the purpose of arbitration. The agreement therefore, contemplates that if the parties agree, and there is a consensus between them, they can appoint any such person as sole arbitrator but if they do not agree to any name then C.N. S. shall be the sole arbitrator for the purpose of this arbitration.
Mr. Qamar Abbas the learned counsel has contended that application under section 20 is not maintainable as it should have been filed under section 8. If this is the objection, then it is too technical for non-suiting a party.
Both the learned counsel agree that the matter may be referred to a sole arbitrator and they also agree that Mr. Justice (Rtd.) K.A. Ghani be appointed sole arbitrator in the dispute. By consent Mr. Justice (Rtd.) K.A. Ghani is appointed sole Arbitrator. The office should inform the learned Sole Arbitrator. In the arbitration proceedings the plaintiff would be making its claim and according to Mr. Qamar Abbas the Defendant will also make a counter claim for the over payment made to the Plaintiff. In these circumstances both the disputes will be adjudicated by the learned Sole Arbitrator. The tentative fee of the Learned Sole Arbitrator is fixed at Rs. 30,000 to be equally paid by both the parties to the Sole Arbitrator.
M.Y.H./I-9/K Order accordingly.
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