The court confirmed party autonomy in arbitration appointments, allowing for a sole arbitrator despite an initial agreement for a three-arbitrator panel.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Clause 23.16 of the Dealership Agreement - Appointment of Arbitrator - The court grants the petition for the appointment of a sole Arbitral Tribunal per the consent of the parties, deviating from the initial stipulation of three arbitrators. (Paras 1-4)

Facts of the case:
The petitioner, seeking to appoint an Arbitral Tribunal, references the Dealership Agreement from 25.02.2018, while the respondent expresses no objection to the arbitration reference and consents to a sole arbitrator.

Findings of Court:
Mr. Justice Jayant Nath (Retd) is appointed as the sole Arbitrator, with fees allocated as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996, and disclosure to be made under section 12 of the same Act.

Issues: The central issue was whether to appoint a three-member Arbitral Tribunal or a sole Arbitrator based on consent.

Ratio Decidendi: The court establishes that the parties’ mutual consent is sufficient to deviate from the originally stipulated three arbitrators, emphasizing the importance of party autonomy in arbitration.

Result: Petition disposed of as above.

Table of Content
1. appointment of arbitral tribunal (Para 1)
2. consensus on arbitration method (Para 2 , 3)
3. procedural orders for arbitration (Para 4 , 5 , 6)
4. resolution of petition (Para 7)

JUDGMENT

Sanjeev Sachdeva, J. Petitioner seeks appointment of an Arbitral Tribunal in terms of clause 23.16 contained in the Dealership Agreement dated 25.02.2018.

2. Learned counsel for the respondent submits that without prejudice, respondent has no objection to reference to arbitration.

3. Learned counsel appearing for the parties submit that though the dispute stipulates that reference shall be to a panel of three arbitrators, however, they pray that a sole Arbitral Tribunal be constituted to adjudicate the disputes between the parties.

4. Accordingly, with the consent of parties Mr. Justice Jayant Nath (Retd), former judge of this court (+91 8527959494) is appointed as the sole Arbitral Tribunal to adjudicate the dispute between the parties. The Arbitral tribunal shall entertain the claims and counter claims, if any, between the parties.

5. The fees of the learned Arbitrator shall be as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

6. Arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within two weeks of entering reference.

7. Petition is disposed of in the above terms.

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