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

Mehta Textiles Ltd and Rao Dyes Pvt Ltd (both Indian companies) have an arbitration clause that is silent on how arbitrators are appointed. They want a three-member tribunal. Under the default procedure in section 11, how is the presiding arbitrator appointed?

Where the parties have agreed no appointment procedure and want three arbitrators, each party appoints one arbitrator and those two appoint the third, who is the presiding arbitrator. Court involvement arises only if this default process fails.

  1. AEach party appoints one arbitrator, and the two appointed arbitrators appoint the third, who acts as presiding arbitratorCorrect
  2. BThe party that first invokes arbitration appoints all three arbitrators
  3. CThe High Court must appoint all three arbitrators in every case
  4. DThe two parties jointly appoint the presiding arbitrator before appointing their own nominees

Explanation

Section 11(3) provides that, failing agreement on a procedure, each party appoints one arbitrator and the two so appointed appoint the third, who acts as presiding arbitrator. Court appointment arises only on failure, so the option giving the court all appointments is wrong.

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