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

Ananya Pharma Ltd, an Indian company, and Helvetia Labs AG, a Swiss company, are in an international commercial arbitration. Their agreement requires a sole arbitrator, and they cannot agree on one within thirty days of a request. Ananya wants to approach the Delhi High Court. Which statement is correct under Section 11?

In an international commercial arbitration, the application goes to the Supreme Court or its designate, not the High Court. That court may appoint a sole arbitrator whose nationality differs from the nationalities of both parties, since the parties belong to different nationalities.

  1. AThe Delhi High Court must decide, as Ananya is based in Delhi
  2. BThe reference to the court is construed as the Supreme Court, which or its designate may appoint a sole arbitrator of a nationality different from both partiesCorrect
  3. COnly the Swiss courts can make the appointment
  4. DThe Chief Justice of the High Court may appoint only an Indian national

Explanation

In international commercial arbitration, references to the court in the appointment sub-sections are read as the Supreme Court. For a sole or third arbitrator, the Supreme Court or its designate may appoint an arbitrator of a nationality other than those of the parties where they belong to different nationalities. The High Court option ignores this rule.

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