JUDGMENT S.K. Mahajan, J.
1. This petition under Section 11(6) of the Arbitration and Conciliation Act was Filed for appointment of an arbitrator on the allegations that the respondent had invited tenders for sale of certain scrap; the tender of the petitioner having been accepted, an order was placed upon the petitioner to deposit certain amount in instalments and to remove the material from site. The aforesaid order was to be carried out on the terms and conditions contained in the supply order dated 3rd September, 1996. Certain disputes having arisen between the parties under the aforesaid supply order, the petitioner gave a notice to the respondent on 16th August, 1999 for reference of those disputes to an arbitrator to be appointed in terms of the arbitration agreement between the parties. It is alleged that in spite of receipt of notice, the arbitrator was not appointed and the petitioner, therefore, filed this petition for appointment of an arbitrator under the Arbitration and Conciliation Act, 1996.
2. Notice of the petition was duly served upon the respondent but as no one has appeared on its behalf, the respondent was proceeded ex parte on 3rd April, 2000. Ex parte evidence has been led by means of affidavits.
3. Clause 14 of the agreement between the parties providing for arbitration reads as under:-
"In the event of any dispute and/or difference arising between the tenderers purchasers buyers and/or their agent as to the construction, interpretation and/or execution of the contract and/or the respective rights and liabilities of the parties, such disputes and/or differences shall be referred to the sole Arbitrator of the Chief Executive of the Principal for a company registered under the Companies Act, in case of PSUs; the head of Department, in case of Govt. Deptts, Ordinance Factory Board Units, defense Units, who may act himself or nominate in his stead any officer subordinate to him or of MSTC, being not below the rank of General Manager/Director in the Govt. Deptt, who shall act as the sole arbitrator. The provisions of the Indian Arbitration Act, 1940, and the rules thereunder shall apply to such Arbitration. The award passed by such sole Arbitrator shall be final and shall conclusively bind all the parties."
4. In view of the above, I am satisfied that the disputes between the parties were required to be settled by arbitration under the aforesaid clause and as the respondent has failed to appoint an arbitrator in spite of notice having been served upon it, in my view, the arbitrator is now to be appointed only by the Court. I, accordingly, appoint Mr. Jagmohan Sabharwal, Senior Advocate, as the arbitrator to decide the disputes between the parties as raised in the petition. Respondent is ex parte before the Court, however, the arbitrator will give due notice to the respondent at the time of proceeding with the arbitration. Arbitrator shall be paid a fee of Rs. 3,500/- per hearing which shall be costs in the arbitration.
5. No further orders are required to be passed on this petition and the same stands disposed of. Copy of the order be given DASTI to learned counsel for the petitioner.