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CS Professional · Arbitration, Mediation and Conciliation · Arbitration Procedure, Appointment of an Arbitrator and Other Aspects

A High Court designate is hearing a Section 11 application by Raghav Steels against Vindhya Metals. Vindhya argues that the contract is time-barred and the claims are weak. What must the court confine itself to, and what follows after its decision?

The court examines only whether an arbitration agreement exists, not limitation or merits. Its decision on the appointment is final, and no appeal, including a Letters Patent Appeal, lies against it.

  1. AIt must decide limitation and merits first; its decision may be appealed by Letters Patent Appeal
  2. BIt confines itself to examining the existence of an arbitration agreement; its decision is final and no appeal including Letters Patent Appeal liesCorrect
  3. CIt may refuse appointment if the claim seems weak; a Letters Patent Appeal lies
  4. DIt must refer the parties to the Supreme Court for the merits

Explanation

When considering applications under Section 11 sub-sections (4), (5) or (6), the court confines itself to examining the existence of an arbitration agreement. A decision on the matter is final and no appeal, including Letters Patent Appeal, lies. Limitation and merits are not for the appointing court at this stage.

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