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Issues: Whether the disputes arising out of the tripartite agreement were arbitrable under the arbitration clause, and whether a sole arbitrator could be appointed in the absence of agreement on an even number of arbitrators.
Analysis: The agreement contained a broad arbitration clause covering any controversy, claim or dispute arising out of or in connection with the contract. The Court treated the correspondence, notices, and asserted breaches as sufficient to show the existence of a live dispute between the parties. It held that a commercial contract must be construed to give efficacy to the arbitration clause rather than defeat it on a narrow or technical reading. As the parties had not determined a number of arbitrators and had not agreed to an even number, the default rule under Section 10(2) applied. The Court also noted that the matter fell within the scope of international commercial arbitration and that the request for reference satisfied the statutory framework.
Conclusion: The disputes were held to be arbitrable, and the arbitration agreement was treated as providing for a sole arbitrator. A sole arbitrator was appointed in favour of the petitioner.
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