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

Orion Steel Ltd (Jamshedpur) files an application under Section 11 before a High Court to appoint an arbitrator against Pragati Infra Ltd. Pragati argues that the claims are time-barred and that the contract was not validly performed. Under the Act, what is the scope of the court's examination at this stage?

The court confines itself to examining whether an arbitration agreement exists. Under Section 11(6A), when hearing applications for appointment, it does not decide the merits, limitation or performance disputes, which are left to the arbitral tribunal.

  1. AIt must decide limitation and performance issues fully before appointing
  2. BIt must hold a full trial on the merits of the claims
  3. CIt confines itself to examining the existence of an arbitration agreementCorrect
  4. DIt must refer the parties to mediation first

Explanation

Section 11(6A) provides that, notwithstanding any judgment, decree or order of any court, the court considering an application under sub-section (4), (5) or (6) shall confine itself to the examination of the existence of an arbitration agreement. Limitation and merits are not examined at the appointment stage under the text.

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