Case Note & Summary
The dispute arose between a London-incorporated company and a Government of India undertaking regarding a global tender and a purchase order issued by the respondent. The petitioner filed an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of a sole arbitrator due to disputes arising from the contract. The arbitration clause in the tender required the Chief Managing Director of the respondent to provide a panel of three names for the petitioner to select from. After the resignation of the initially appointed arbitrator, the respondent provided a new panel, but the petitioner failed to select an arbitrator within the specified time. The respondent subsequently appointed a retired Judge of the Delhi High Court as the sole arbitrator. The petitioner objected to this appointment, arguing that a former Chief Justice of India should have been appointed instead. The court analyzed the arbitration clause and concluded that the respondent was entitled to appoint an arbitrator after the petitioner’s failure to act. The court dismissed the application, stating that the objections raised by the petitioner were not justified, and requested the sole arbitrator to commence proceedings promptly, expecting an award within six months. The application was rejected without costs.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Failure to Select from Panel - Arbitration and Conciliation Act, 1996, Section 11(6) - The petitioner failed to select a sole arbitrator from the panel provided by the respondent within the specified time, allowing the respondent to appoint a retired Judge as the sole arbitrator. The court held that the arbitration clause permitted the respondent to make the appointment after the petitioner's failure to act (Paras 1-4).
Issue of Consideration
Whether the petitioner was entitled to appoint a sole arbitrator after failing to select from the panel provided by the respondent.
Final Decision
The application for the appointment of a sole arbitrator was rejected, with no order as to costs.
Law Points
- Arbitration
- appointment of arbitrator
- breach of contract
- arbitration clause
- sole arbitrator
- selection process
