Concluded arbitration agreement required: counter proposals and unaccepted correspondence cannot sustain arbitral proceedings.

An arbitration reference can be sustained only where the parties have a concluded agreement in writing and are ad idem. Here, the work order and tender correspondence did not amount to absolute acceptance; the respondent's reply was a counter proposal that was never accepted. In the absence of a valid written arbitration agreement, no lawful basis existed for the appointment of the sole arbitrator or for continuation of the arbitral proceedings. The principle that an arbitration clause may be inferred from correspondence applies only when consensus ad idem is established, and the tribunal's competence to rule on its own jurisdiction presupposes that such an agreement exists.

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Issues: Whether a concluded arbitration agreement existed between the parties so as to sustain the appointment of the sole arbitrator and the arbitral proceedings.

Analysis: The work order and tender correspondence did not result in an absolute and unqualified acceptance of the offer. The respondent's response amounted to a counter proposal and was not accepted by the petitioner. No agreement in writing was executed between the parties as required for an arbitration agreement under the governing arbitration law. The principle that an arbitration clause may be gathered from correspondence applies only where the parties are ad idem, which was not the position here. The power of the arbitral tribunal to rule on its own jurisdiction under the statute presupposes the existence of a lawful arbitration agreement.

Conclusion: No concluded arbitration agreement existed between the parties, and the arbitral proceedings could not be sustained.

Final Conclusion: The revision petition failed because the lower appellate court was correct in holding that the dispute could not be compelled to arbitration in the absence of a valid written arbitration agreement.

Ratio Decidendi: An arbitration reference can be made only when there is a concluded agreement in writing showing consensus ad idem; a mere counter proposal or conditional response does not create an enforceable arbitration agreement.

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