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That decision was based on the statement by Davies LJ in Baron V. Sunderland Corp. [1966] 1 All ER 349 at 351, [1966] 2 QB 56 at 64 as follows:
‗It is necessary in an arbitration clause that each party shall agree to refer disputes to arbitration; and it is an essential ingredient [of an arbitration clause] that either party may in the event of a dispute arising refer it in the provided manner to arbitration. In other words, the clause must give bilateral rights of reference.' The judgment of Davies LJ was concurred in by the other two members of the Court.
In Tote Bookmakers Ltd v Development and Property Holding Co Ltd [1985] 2 All ER 555 at 559, [1985] Ch. 261 at 266 Peter Gibson J, after observing that the statement of the law by Davies LJ had been subjected to powerful criticism in both Russell on Arbitration (20th edn, 1982) pp 38-43 and Mustill and Boyd Commercial Arbitration (1982) p52, came to the conclusion that, whatever his personal views on the question, he was compelled as a matter of authority to follow the statement in Baron v Sunderland Corp.
The authorities prior to Baron v. Sunderland Corp.
lead me to the same conclusion.‖ xxxx xxxx xxxx xxxx I do not think it is correct to say that the clause must give bilateral rights of reference. All that is necessary is that there shall be a contract which gives a right of reference (whether unilateral or bilateral). That is present in this case.
xxxx xxxx xxxx xxxx The result in my view is that the parties are entitled, if they so choose, to confer a unilateral right to insist on arbitration.