Parties can seek arbitration under the Arbitration & Conciliation Act when settlement talks fail, emphasizing the need for an appointed arbitrator to resolve disputes.

Headnote:(A) Arbitration & Conciliation Act, 1996 - Section 11(6) - Appointment of an Arbitrator - Petition for appointment resulted from failed settlement talks between parties - The court allowed the petition for arbitration and appointed a retired District and Sessions Judge as the sole Arbitrator to adjudicate disputes - The Arbitrator’s fees will follow the Fourth Schedule of the Act, shared equally by both parties. (Paras 1-7)

Facts of the case:
The petitioner sought the appointment of an Arbitrator following unsuccessful settlement talks, and the parties agreed to submit their disputes for arbitration.

Findings of Court:
The court determined the necessity for arbitration as the parties could not reach a settlement, leading to the appointment of an Arbitrator.

Issues: The issue revolved around the appointment of an Arbitrator for the disputes between the parties after failed negotiations.

Ratio Decidendi: The court emphasized the importance of arbitration in resolving disputes when parties are unable to settle and confirmed the appointment of an appropriate Arbitrator, ensuring the procedures are adhered to as per the Act.

Result: The petition is allowed and disposed of in the above terms.

Table of Content
1. appointment of arbitrator requested. (Para 1 , 2)
2. agreement to arbitrate parties' disputes. (Para 3 , 4)
3. appointment terms and conditions for arbitrator. (Para 5 , 6 , 7 , 8)
4. petition disposed in terms agreed. (Para 9)

JUDGMENT

Sanjeev Sachdeva, J. Petitioner seeks appointment of an Arbitrator under Section 11(6) of the Arbitration & Conciliation Act, 1996.

2. Learned counsel for the parties informed that the settlement talks have failed and accordingly they could not arrive at a settlement.

3. Learned counsel for the parties pray that an Arbitral Tribunal be constituted to adjudicate the disputes between the parties.

4. Since the parties are agreeable to reference of their disputes to arbitration, the petition is allowed.

5. Without prejudice to the rights and contentions of the parties, Ms. Pinki, (Retired District and Sessions Judge, Delhi, D-145, Anand Niketan, New Delhi; Email ID pinki13361@yahoo.co.in Mobile # 9910384721) is appointed as the sole Arbitrator.

6. The Arbitral tribunal shall adjudicate the claims and counter claims, if any, between the parties.

7. The fees of the learned Arbitrator shall be as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996. The fee of the Arbitrator shall be initially shared equally by the parties.

8. The Arbitrator shall furnish the requisite disclosure under section 12(2) of the Arbitration and Conciliation Act, 1996 within two weeks of entering reference.

9. The petition is disposed of in the above terms.

Click Here to Read the rest of this document