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

Iyer Infra Ltd (Chennai) and Kapoor Builders Pvt Ltd, both Indian companies, apply to the court for appointing an arbitrator under their agreement. Kapoor objects that the underlying contract is badly performed and the claim is weak. What is the scope of the court's examination at this stage?

The court confines itself to examining whether an arbitration agreement exists. It does not go into the merits of the claim or the performance of the contract, which are left to the arbitral tribunal.

  1. AIt confines itself to examining the existence of an arbitration agreementCorrect
  2. BIt decides the merits of the claim before appointing
  3. CIt examines whether the contract was performed properly
  4. DIt examines whether the award would be enforceable

Explanation

Section 11(6A) directs the court, while considering applications under sub-sections (4), (5) or (6), to confine itself to examination of the existence of an arbitration agreement. Merits and performance are for the tribunal.

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