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

Alpha Textiles Ltd and Beta Dyes Pvt Ltd, both Indian companies, have an arbitration clause providing for a sole arbitrator but no procedure for choosing him. Alpha sent a written request to Beta to agree on the arbitrator. Beta did not respond for 30 days. Alpha now wants to approach the court. Which statement is correct?

Alpha may apply to the High Court for appointment. With no agreed procedure for a sole arbitrator, failure to agree within thirty days of the request lets a party seek appointment by the court or its designate. The sixty-day period only concerns how quickly the application is disposed of.

  1. AAlpha must wait for 60 days before approaching the court
  2. BAlpha may request the High Court to make the appointment, because the parties failed to agree within thirty days of the requestCorrect
  3. CAlpha may itself appoint the sole arbitrator since Beta stayed silent
  4. DAlpha can only file a civil suit because no appointment procedure was agreed

Explanation

Where there is no agreed procedure and the parties fail to agree on a sole arbitrator within thirty days of a request by one party, the appointment is made, on request of a party, by the court or its designate. The 60-day period relates to disposal of the application, not to the right to apply. Unilateral appointment by Alpha is not provided for.

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