Arbitration clause interpretation limits appointment of arbitrator where the dispute falls outside the clause's stated ambit.

An arbitration clause confined by its heading and text to commercial disputes between public sector enterprises inter se and between such enterprises and Government departments could not be extended to a dispute involving a private contractor. The Court held that the heading and surrounding context were relevant aids to interpretation and that the clause had to be read within its stated ambit. As the clause did not cover the parties' dispute, appointment of an arbitrator under Section 11(6) was improper. The order appointing the arbitrator was set aside, and the parties were left to pursue civil remedies with limitation protection preserved.

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Issues: Whether the arbitration clause in the contract applied to a dispute between a public sector enterprise and a private contractor, and whether appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 was proper.

Analysis: The clause relied upon was titled for commercial disputes between public sector enterprises inter se and between public sector enterprises and Government departments. Its language, read as a whole and in light of the heading, showed that it was confined to disputes of that class and did not extend to an agreement involving a private party. In construing the arbitration agreement, the heading and context were relevant aids, and the court could not treat the clause as covering a dispute outside its stated ambit.

Conclusion: The appointment of the arbitrator under Section 11(6) was improper because the arbitration clause did not apply to the parties' dispute.

Final Conclusion: The order appointing the arbitrator was set aside and the parties were left to pursue civil remedies, with the benefit of limitation protection preserved.

Ratio Decidendi: An arbitration clause must be construed according to its text, heading, and context, and cannot be extended beyond the class of disputes to which it is plainly confined.

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