Arbitration clause in MoU led to referral of dispute and appointment of sole arbitrator under agreed terms.

A dispute falling within an arbitration clause in the MoU was referred to arbitration because the clause covered disputes arising out of or relating to the contract. On the parties' joint request, a named retired Judge was appointed as sole arbitrator, subject to the statutory declaration of independence and impartiality under Section 12 and the fee structure in the Fourth Schedule of the Arbitration and Conciliation Act, 1996. The seat of arbitration was fixed at Aurangabad in line with the parties' agreement.

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Issues: Whether the dispute between the parties ought to be referred to arbitration and a sole arbitrator appointed in terms of the MoU.

Analysis: The MoU contained an arbitration clause covering disputes arising out of or relating to the contract. The parties jointly requested appointment of a named retired Judge as sole arbitrator, and the appointment was made subject to the requisite declaration of independence and impartiality under Section 12 and the fee structure under the Fourth Schedule of the Arbitration and Conciliation Act, 1996. The seat of arbitration was fixed at Aurangabad in accordance with the parties' agreement.

Outcome: The dispute was referred to arbitration and a sole arbitrator was appointed.

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