J.R. MIDHA, J.

1. The petitioner is seeking appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.

2. Brief Facts

2.1. Vide agreement dated 10th March, 2008, the petitioner agreed to purchase rights in respect of 2,28,690 sq. feet of FSI from the respondent No. 1 for a total consideration of Rs. 16,46,56,800/-. Clause 41 of the agreement contains an arbitration agreement which is reproduced hereunder:-

“41. In the event of any dispute whatsoever arising between the parties in any way connected with this deal, the First Party shall refer the same to sole arbitration of a person to be appointed by the Managing Director of the first party and the decision of the arbitration shall be final and binding on both parties. The arbitration proceedings shall always be held in the city of New Delhi, India. The Arbitration & Conciliation Act, 1996 or any statutory amendments/ modifications shall govern the arbitration proceedings thereof for the time being in force. The High Court of Delhi and the Courts subordinate to it shall have jurisdiction in all matters arising out of or touching and concerning this allotment.”

2.2. Disputes arose between the parties whereupon respondent No. 1, vide letter dated 03rd October, 2012, invoked the arbitration agreement by calling upon the Managing Director of respondent No. 1 to appoint an arbitrator to adjudicate the disputes between the parties.

2.3. Vide letter dated 26th June, 2015, respondent No. 1 reminded the Managing Director of respondent No. 1 to appoint the arbitrator within one week failing which respondent No. 1 shall approach the Court for appointment of an arbitrator. The relevant portion of the letter dated 26th June, 2015 is reproduced hereunder:

“This is with reference to the letter dated 03/10/2012 through which it was brought to your kind attention that the parties namely M/s. Zion Promoters & Developers Pvt. Ltd. and M/s. Ferrous Infrastructure Pvt. Ltd. had entered into an agreement dated 10/03/2008 (Hereinafter referred to as “Agreement”) pursuant to which certain disputes had arisen between the parties. The said disputes, inter-alia, included the recovery charges on account of common work undertaken at Ferrous City, Sector-89, Faridabad, Haryana and also interest on account of the delayed payment.

That by the same letter dated 03/10/2012, we had invoked arbitration and had requested your good self to appoint an Arbitrator to adjudicate upon the disputes between the parties in pursuance of the arbitration clause as mentioned in clause 41 of the Agreement.

However, despite our request for an appointment of an Arbitrator the same has not been appointed till date. In view thereof you are requested to kindly appoint an arbitrator within one (1) week of the receipt of this letter, failing which we shall be at liberty to approach the Hon’ble Courts for the purpose of appointment of an Arbitrator.”

(Emphasis Supplied)

2.4. On 15th July, 2015, the petitioner instituted this petition for appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act in which the notice was issued to the respondents on 20th July, 2015.

2.5. Vide letter dated 22nd July, 2015, the Managing Director of respondent No. 1 appointed an arbitrator.

2.6. According to the petitioner, the appointment of the arbitrator by the Managing Director of respondent No. 1, after the filing of this petition, is not valid. The petitioner, therefore, seeks appointment of an independent arbitrator by this Court.

3. Submissions of the petitioner

3.1. On 15th October, 2012, respondent No. 1 invoked Clause 41 of the arbitration agreement dated 10th March, 2008 and requested its Managing Director to appoint a sole arbitrator. However, the Managing Director of respondent No. 1 failed to appoint the arbitrator despite reminder dated 26th June, 2015 whereupon the petitioner filed this petition on 15th July, 2015. The alleged appointment of the arbitrator after th