2006 (4) TMI 566

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....or short "the Act"). Though there was controversy between the appellant and the respondent as to whether there existed an arbitration clause justifying reference to an arbitrator, ultimately, the appellant agreed to the appointment of one of the arbitrators suggested by the respondent clarifying that the appellant was agreeing to the appointment of the arbitrator "not under the alleged contract but outside the alleged contract to decide whether there is a concluded contract and in any event can you invoke the arbitration clause under the alleged contract" Thus, the dispute stood referred to a sole arbitrator. The sole arbitrator while making an award held that there had come into existence a valid contract between the pa....

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....by special leave has been filed by the appellant. 4. Learned senior counsel for the appellant challenged the decision of the High Court and that of the arbitrator that there had come into existence a concluded contract between the parties. He further contended that even if there was a concluded contract, there was no arbitration agreement in the contract or in the correspondence relating thereto. He also contended on merits that the arbitrator was not justified in awarding damages. Learned senior counsel for the respondent, on the other hand, submitted that the finding by the arbitrator that there had come into existence a concluded contract was based on an appreciation of the materials available and the circumstances obtaining and such a ....

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....t from the appellant. He submitted that the findings on these aspects based on the materials was perfectly correct and that there was no occasion for interfering with the same. 6. We do not think it necessary to deal in detail with the materials placed before us by learned Counsel for the appellant. During the course of the hearing when we took note of the nature of the transaction between the parties and the continuing and prospective business relationship between them, we put it to the counsel for the appellant that even if we accept his contention and hold that there was no arbitration agreement, that may not put an end to the dispute and the same would lead to the parties fighting another round of litigation for years to come, thus, fu....