The arbitration clause in the main contract states that the disputes which are to be referred to the committee of three arbitrators under Clause 67.3 are disputes in regard to which the decision of the Engineer (“Engineer” refers to person appointed by the State of Kerala to act as Engineer for the purpose of the contract between the PW Department and the respondent) has not become final and binding pursuant to Clause 67.1 or disputes in regard to which amicable settlement has not been reached between the State of Kerala and the respondent within the period stated in Clause 67.2. Obviously neither Clause 67.1 nor 67.2 will apply as the question of “Engineer” issuing any decision in a dispute between the contractor and the sub-contractor, or any negotiations being held with the Engineer in regard to the disputes between the contractor and the subcontractor does not arise. The position would have been quite different if the arbitration clause had used the words “all disputes arising between the parties” or “all disputes arising under this contract”. Secondly, the arbitration clause contemplates a committee of three arbitrators, one each to be appointed by the State of Kerala and the respondent and the third (Chairman) to be nominated by the Director General, Road Development, Ministry of Surface Transport, Roads Wing, Government of India. There is no question of such nomination in the case of a dispute between the contractor and the sub-contractor.” .....M/S. Elite Engineering & Construction (Hyd.) Pvt. Ltd.=VS=M/S. Techtrans Construction, (Civil), 2018 (1) [4 LM (SC) 66] ....View Full Judgment

Arbitration is the submitting of a disputed matter for determination, before another person or persons, by consent of the parties in dispute. The person before whom the matter is submitted is called the arbitrator. In Bangladesh arbitration is regulated by the Arbitration Act 2001 (Act I of 2001). “Arbitrator”, though by agreement between the parties may be called upon to exercise judicial powers and to decide a dispute according to law that would not make the arbitrators a Court. ….. ( Idrish Ali and another Vs. The State, 38 DLR (1986) 270 )
The determination of a dispute by one or more third independent third parties (the arbitrators) rather than by a court. Arbitrators are appointed by the parties in accordance with terms of the arbitration agreement or in default by a court. An arbitrator is bound to apply the law accurately but may in general adopt whatever procedure he chooses and is not bound by the exclusionary rules of law of evidence; he must, however, conform to the rules of natural justice. ….. ( Begum Lutfunnessa Vs. N Ahmed, 40 DLR (1988) 232 )
See,the Arbitration Act, 2001 (Act I of 2001)