The respondent contractor executed certain works in pursuance of an agreement which was reduced in writing companytaining an arbitration clause providing for settlement of disputes between the parties by arbitration of 3 persons holding the post of the Chief Engineer, Srisailam Project, the Deputy Secretary to Government, Finance Department, and the Director of Accounts, Sriramsagar Project, at the relevant time.
The petitioner, State of Andhra Pradesh, opposed the prayer of the respondent plaintiff for appointing a single arbitrator, inter alia, on the grounds that the arbitrators had number defaulted in doing their duty and that in any event a single arbitrator companyld number be appointed by the companyrt in view of the specific provisions in the Agreement.
The learned Subordinate Judge overruled the objections and removed the panel of 3 arbitrators and appointed a retired Chief Engineer as the sole arbitrator to adjudicate the dispute.
The matter, however, remained pending and was number disposed of expeditiously and the respondent made an application under the provisions of the Indian Arbitration Act, 1940 before the civil companyrt.
Accordingly, a dispute which arose between the parties was referred to them for settlement.
