JUDGMENT 1. -Applicant M/s. L.G. Trading Engineers (Private) Limited has filed this application under Section 11 of the Arbitration and Conciliation Act, 1996 (for short 'the Act of 1996') for appointment of sole arbitrator by the Court, on the Chief Engineer having failed to comply with Clause 23, which relates to Arbitration, of the Conditions of Contract appended to the Rajasthan Public Works Finance & Accounts Rules. 2. It is the case of the applicant that on 14.10.1996 he gave a notice to the Chief Engineer as required under Clause 23 along with fee of र 250/-. However the Chief Engineer has not responded neither took any step as required under Clause 23, a clause regarding arbitration, and thus he has moved the court for appointment of the sole arbitrator. 3. Non-applicants entered appearance. Learned counsel appearing on their behalf has submitted that the notice given by the applicant was not accompanied with the prescribed fee and therefore it cannot be treated as a valid notice to give effect to Clause 23. The relevant portion of Clause 23 is reproduced as under: "For the purpose of appointing the sole arbitrator referred to above, the Chief Engineer will on receipt of notice and prescribed fee from the Contractor send a panel of 3 names not below the rank of Superintending Engineer of the Rajasthan Government and who shall all be presently unconnected with the contract. The contractor shall on receipt of the names as aforesaid select any one of the persons named, to be appointed as a sole arbitrator and communicated his name to the Chief Engineer. The Chief Engineer shall thereupon appoint the said person as the sole arbitrator without delay. The Arbitrator shall give reasons for award. 1 The fees of arbitrator shall be determined as per formula indicated below: A For dispute upto Rs. 5.00 lakhs Fees 2500 B For dispute over Rs. 5.00 lakhs Fees @ 1/4% of the amount over Rs. 5.00 lakhs C Clerkage & Stationery Fees i Clerkage 10% of total fees ii Stationery 5% of total fees Total payable fees would not be more than Rs. 10,000/-." 4. 5.00 lakhs Fees 2500 B For dispute over Rs. 5.00 lakhs Fees @ 1/4% of the amount over Rs. 5.00 lakhs C Clerkage & Stationery Fees i Clerkage 10% of total fees ii Stationery 5% of total fees Total payable fees would not be more than Rs. 10,000/-." 4. It appears that under Clause 23, in case of a dispute for the purposes of appointing a sole arbitrator, a notice is required to be given to the Chief Engineer along with prescribed fee and on such notice being received by the Chief Engineer from the Contractor he will send a panel of three names not below the rank of Superintending Engineer of the Government of Rajasthan who are unconnected with the contract work to be undertaken by the Contractor. After the receipt of panel of names by the contractor, he may select any one of the names to be appointed as a sole arbitrator and communicate his name to the Chief Engineer. On receipt of the name of the sole arbitrator, the Chief Engineer shall thereupon appoint the said person as sole arbitrator without delay and the arbitrator thereafter shall give a reasoned award. 5. Vide Finance Department order dated 29.1.1992 the prescribed fee has been enumerated and added to Clause 23 which provides that the fee of the arbitrator shall be determined as per formula indicated below : A For dispute upto Rs. 5.00 lakhs fees 2500 B For dispute ever Rs. 5.00 lakhs Fees . 1/4% of the amount over Rs. 5.00 lakhs C Clerkage & Stationery Fees i Clerkage 10% of total fees ii Stationery 5% of total fees There is a maximum limit provided for the fee as of र ten thousand. 6. It is manifest from this Clause that the Chief Engineer will be required to send a panel of three names who are not below the rank of Superintending Engineer, on being approached by the Contractor by giving him a notice along with the prescribed fees. The Chief Engineer is duty bound to send a panel of three names to be appointed as an Arbitrator on receipt of valid notice, that is to say a notice by the Contractor exercising the powers under Clause 23 for referring the dispute to the arbitrator which is accompanied by the prescribed fees. 7. The Chief Engineer is duty bound to send a panel of three names to be appointed as an Arbitrator on receipt of valid notice, that is to say a notice by the Contractor exercising the powers under Clause 23 for referring the dispute to the arbitrator which is accompanied by the prescribed fees. 7. In the present case, as the claim made by the applicant, the prescribed fee would be rupees ten thousand. As the prescribed fee has not been sent along with the notice it cannot be said that the Chief Engineer has not exercised the power or duty which he has to comply with under Clause 23 which refers to Arbitration. 8. As the applicant has not taken steps as required under Clause 23, no directions can be issued by this Court for appointment of the arbitrator under Section 11 of the Act of 1996. It shall be open for the applicant to serve notice on the Chief Engineer along with prescribed fee and then it would be incumbent upon the Chief Engineer to act in accordance with the provisions of Clause 23.The application stands rejected. Application Rejected. *******