CS Professional · Arbitration, Mediation and Conciliation · Arbitration Procedure, Appointment of an Arbitrator and Other Aspects
Meridian Textiles Ltd (Surat) and Kaveri Dyes Pvt Ltd (Chennai) have an arbitration clause providing for three arbitrators but saying nothing about how they are to be appointed. A dispute arises and Meridian asks Kaveri to appoint its arbitrator. Kaveri does not respond for 40 days. What is the legal position under Section 11?
Meridian can apply to the High Court or Supreme Court, or their designate, for appointment. Where no procedure is agreed for a three-member tribunal and a party fails to appoint within thirty days of the other side's request, the court-designated authority makes the appointment on request.
- AMeridian may request the appointment to be made by the Supreme Court or High Court (or its designate), because Kaveri failed to appoint within thirty days of the requestCorrect
- BMeridian must wait for 60 days before approaching any court
- CMeridian may itself appoint the second arbitrator without any court involvement
- DThe arbitration agreement lapses because one party failed to act
Explanation
Where there is no agreed procedure and the tribunal has three arbitrators, each party appoints one. If a party fails to appoint within thirty days of the request from the other party, the appointment is made on request by the Supreme Court or High Court or its designate. The 60-day period relates to disposal of the application, not to a waiting period before applying.
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