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2009 (5) TMI 956 - SUPREME COURTValidity of Appointment of the arbitrator by the HC exercising jurisdiction u/s 11 (6) of the Arbitration and Conciliation Act, 1996 - Heading of arbitration clause is replaced by another clause - Applicability of replaced clause on an agreement, entered into between the appellant and the respondents, one of whom is a private party - Rule of Interpretation of the section heading or marginal note - There is a clause No. 14 with the caption "Settlement of Disputes/Arbitration". The aforesaid clause 14 in the Agreement, however, was scored out and the same was replaced by another clause No. 14 the caption "Arbitration with regard to the commercial disputes between the Public Sector Enterprises inter se and Public Sector Enterprises and Government Departments." HELD THAT:- The aforesaid clause No. 14 relates to disputes of commercial nature arising between the Public Sector Enterprises inter se and between the Public Sector Enterprises and Government Departments. The text that follows also makes the said position clear which provides that after the award is given by the arbitrator in the department of public sector enterprises, reference for setting aside or revision of the award is to be made to the Law Secretary, Department of Legal Affairs, Ministry of Law & Justice, Government of India. The said clause, therefore, concerns the commercial disputes arising between the Public Sector Enterprises inter se and between such enterprises and Government Departments. The said clause will have no application to an agreement which is entered into between the appellant and the respondents, one of whom is a private party. Since that arbitration clause is not applicable to the case in hand, therefore, the appointment of the arbitrator by the Calcutta High Court exercising jurisdiction under Section 11 (6) of the Act was improper. Rule of Interpretation of the section heading or marginal note - It is well settled rule of interpretation that the section heading or marginal note can be relied upon to clear any doubt or ambiguity in the interpretation of any provision and to discern the legislative intent. The section heading constitutes an important part of the Act itself, and may be read not only as explaining the provisions of the section, but it also affords a better key to the constructions of the provisions of the section which follows than might be afforded by a mere preamble. We, accordingly, set aside the said order.
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