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IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Aristoplast Products Private Limited - Appellant
Versus
Energy Efficiency Services Limited - Respondent
Arbitration Petition No. 1094 of 2021, Miscellaneous Application No. 14694, 4695 of 2021
Decided On : 12-11-2021
Arbitration - Appointment of Arbitrator - Summary: The court addressed a petition seeking the appointment of an arbitrator on behalf of the respondent. The arbitration clause in the agreement envisaged arbitration by a three-member arbitral tribunal. The court referred the matter to the Delhi International Arbitration Centre (DIAC) to appoint an arbitrator on behalf of the respondent, with the directive to proceed expeditiously in making the appointment.
Fact of the Case:
This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator on behalf of the respondent. The petitioner contended that the respondent failed to appoint its arbitrator within the specified period, leading to the request for the court to appoint the respondent's arbitrator.
Finding of the Court:
The court referred the matter to the Delhi International Arbitration Centre (DIAC) to appoint an arbitrator on behalf of the respondent, with the directive to proceed expeditiously in making the appointment. The petition along with pending applications was disposed of.
Issues: Appointment of arbitrator on behalf of the respondent under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Ratio Decidendi: The court has the authority to appoint an arbitrator on behalf of a party if the other party fails to appoint its arbitrator within the specified period, as per the arbitration clause in the agreement between the parties.
Final Decision: The court referred the matter to the Delhi International Arbitration Centre (DIAC) to appoint an arbitrator on behalf of the respondent, with the directive to proceed expeditiously in making the appointment. The petition along with pending applications was disposed of.
JUDGMENT
C. Hari Shankar, J. - This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator on behalf of the respondent. The arbitration clause, in the agreement between the parties, envisages arbitration by a three member arbitral tribunal. The petitioner contends that, having appointed Hon’ble Mr. Justice R.C. Chopra, a Retired Judge of this Court, as its Arbitrator and intimated the respondent accordingly, the respondent failed to appoint its arbitrator within the period of 42 days envisaged by Clause 6.2.6 of the agreement between the parties, the right of the respondent to appoint its arbitrator stands forfeited and this Court would have to appoint the respondent’s arbitrator.
2. Mr. Vishal Arun, learned Counsel for the respondent has no objection, but suggests that the matter may be referred to the Delhi International Arbitration Centre (DIAC) to appoint the respondent’s arbitrator.
3. Accordingly, the present matter is referred to the Delhi International Arbitration Centre (DIAC) to appoint an arbitrator on behalf of the respondent. The two learned Arbitrators would, thereafter, proceed to appoint the presiding Arbitrator so that the arbitral tribunal would be constituted and the arbitral proceedings could take off. The DIAC is requested to make the appointment as expeditiously as possible.
4. With the aforesaid observations, this petition alongwith pending applications stands disposed of.
The court has the authority to appoint an arbitrator on behalf of a party if the other party fails to appoint its arbitrator within the specified period, as per the arbitration clause in the agreemen....
A party's right to appoint an arbitrator can be forfeited if they fail to do so within the agreed timeframe as per the arbitration agreement.
The court referred disputes between the parties to arbitration under the Arbitration and Conciliation Act without addressing merits, emphasizing procedural adherence and open questions for the arbitr....
Strict enforcement of arbitration agreement and the law does not permit either party to act as an arbitrator or appoint the arbitrator to arbitrate on the disputes.
Parties consented to arbitration under the Arbitration and Conciliation Act, allowing referral to an arbitrator for dispute resolution, emphasizing procedural efficiency.
The court emphasized that the timeframe for appointing an arbitrator, as set in the agreement, is mandatory, and any deviation undermines the arbitration agreement's validity.
A sole arbitrator can be appointed by a party if the opposing party defaults on arbitrator appointment, per arbitration clause and judicial precedent.
The appointment of the arbitrator must be in accordance with the arbitration agreement and must satisfy the provisions of the arbitration act.
An application for appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 is maintainable despite previous delays, as no arbitral proceedings were initiated un....
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