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

Sundaram Textiles Ltd and Kaveri Exports Pvt Ltd (both Indian companies) have an arbitration clause providing for three arbitrators but saying nothing about how they are to be appointed. A dispute arises. Sundaram appoints its arbitrator and asks Kaveri in writing to appoint one. Under Section 11, what is the position if Kaveri does not appoint within thirty days of receiving the request?

If Kaveri fails to appoint within thirty days of Sundaram's request, a party may apply and the appointment is made by the High Court or a person or institution it designates, because this is a domestic arbitration. The nominee does not become sole arbitrator and the agreement does not lapse.

  1. ASundaram's arbitrator automatically becomes the sole arbitrator
  2. BThe appointment is made, on a party's request, by the High Court or its designated person or institution (domestic arbitration)Correct
  3. CThe arbitration agreement lapses and the dispute must go to a civil court
  4. DSundaram may appoint the second and third arbitrators itself

Explanation

Where no appointment procedure is agreed, each party appoints one arbitrator. If a party fails to appoint within thirty days of the other party's request, the appointment is made on request by the court or its designate. Since this is a domestic arbitration, the High Court is the relevant court. The option making Sundaram's nominee sole arbitrator has no basis in Section 11.

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