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

Sharma Textiles Ltd and Gupta Dyes Pvt Ltd have an arbitration clause that says nothing about how arbitrators are appointed, and they want a three-member tribunal. Sharma Textiles appoints its nominee. Under the Act, what happens next in the default procedure?

Each party appoints one arbitrator, and the two appointed arbitrators then appoint the third, who acts as the presiding arbitrator. The court steps in only if a party or the two arbitrators fail to act within thirty days.

  1. AThe two appointed arbitrators appoint the third arbitrator, who acts as presiding arbitratorCorrect
  2. BSharma Textiles alone appoints the presiding arbitrator
  3. CThe court appoints all three arbitrators immediately
  4. DThe party's nominee acts as sole arbitrator

Explanation

Where the parties have no agreed appointment procedure and the tribunal has three arbitrators, each party appoints one, and those two appoint the third, who presides. Court involvement arises only on failure within thirty days. Option 3 is wrong because the court is not the first step.

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