Named sole arbitrator controls reference, and another arbitrator cannot be appointed absent refusal or failure to act.

An arbitration agreement naming the Vice Chairman of the Ghaziabad Development Authority as sole arbitrator had to be construed strictly according to its clear substance. The Court held that uncertain or detached words could not override the named arbitrator, and that Section 20(4) of the Arbitration Act, 1940 permitted appointment of another arbitrator only where the named arbitrator himself refused or failed to act after reference. Because the dispute had not been referred to the named arbitrator, no such failure could be inferred, and the Court could not appoint an arbitrator of its own choice; the dispute had to be referred to the named sole arbitrator.

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Issues: Whether, on a proper construction of the arbitration clause, the Court could appoint an arbitrator of its choice under Section 20(4) of the Arbitration Act, 1940 when the agreement named the Vice Chairman of the Ghaziabad Development Authority as the sole arbitrator.

Analysis: The arbitration clause was construed strictly as an agreement, and ambiguous or detached words were not permitted to override its clear substance. The clause unmistakably showed that the parties had agreed to a single arbitrator, namely the Vice Chairman of the Ghaziabad Development Authority. The Court held that it was not open to supply or build an arrangement from uncertain language, and that the expression relied upon could not displace the named arbitrator. It further held that the jurisdiction under Section 20(4) arose only if the named arbitrator refused or failed to act, and such failure had to be that of the arbitrator himself, not merely the failure of the authority to make a reference. Since the dispute had not been referred to the named arbitrator, no failure to act by him could be inferred.

Conclusion: The Court could not appoint an arbitrator of its own choice and was required to refer the dispute to the Vice Chairman of the Ghaziabad Development Authority as the named sole arbitrator.

Ratio Decidendi: Where an arbitration agreement names a sole arbitrator, the Court must refer the dispute to that arbitrator and can appoint another only if the named arbitrator refuses or fails to act after reference.

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