Consent from both parties is pivotal for the appointment of an Arbitral Tribunal under loan agreements per the Arbitration and Conciliation Act, 1996.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 11 and 12 - Appointment of Arbitral Tribunal - Petitioner seeks appointment of an Arbitral Tribunal under two Loan Agreements, to which the respondent has no objection. Tribunal appointed is a retired Judge of the Court with fees as per the Fourth Schedule. (Paras 1-7)

(B) Consent of parties - The respondent's lack of objection indicates consent to the constitution of the Arbitral Tribunal as per the agreements. (Paras 2-4)

Facts of the case:
The petitioner sought the formation of an Arbitral Tribunal to resolve disputes arising from two Loan Agreements dated 25.01.2018 and 13.02.2018. The respondent agreed to the formation of the tribunal.

Findings of Court:
The Court allowed the petition and appointed a retired judge as the arbitrator, stipulating adherence to the prescribed fees and required disclosures.

Issues: Whether the respondent's agreement constitutes sufficient basis for appointment of the tribunal under the Arbitration and Conciliation Act.

Ratio Decidendi: The court highlighted that the respondent's lack of objection demonstrated consent, enabling the appointment of the tribunal in line with the agreements.

Result: Petition allowed.

Table of Content
1. appointment of arbitral tribunal requested. (Para 1)
2. respondent consents to tribunal appointment. (Para 2)
3. tribunal appointed; fees and disclosures defined. (Para 3 , 4 , 5 , 6 , 7)

JUDGMENT

Sanjeev Sachdeva, J. Petitioner seeks appointment of an Arbitral Tribunal pursuant to two Loan Agreements dated 25.01.2018 and 13.02.2018.

2. Learned counsel appearing for the respondent submits that without prejudice to their rights and contentions, they have no objection to an Arbitral Tribunal being constituted.

3. In view of the above, the petition is allowed.

4. Accordingly, with the consent of the parties, Mr. Justice V.K.Jain, (Retd) former Judge of this Court (Mobile No. + 91 9650116555) is appointed as the Arbitrator Tribunal. The Arbitral tribunal shall adjudicate the claims and counter claims, if any, of the parties.

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

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

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

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