Court appoints sole arbitrator under Section 11(6) when arbitration agreement process fails due to consent refusal.

ORDER

Joint Development Agreement dated 11.03.2016 was executed by the petitioner and the respondent. Clause 33 thereof, which provides for dispute resolution by arbitration, is set out below:

“33. The parties herein agree to settle all disputes, misunderstandings and difference of opinion that might be arising between them whether as to the interpretation of the terms and conditions, contained herein and / or as to the determination of their respective rights, by way of referring such dispute/s to the sole arbitrator to be appointed by the Party of the Second Part with the consent of the Party of the First Part. The procedure as prescribed by the Indian Arbitration and Conciliation Act, 1996 as amended up to date shall be adopted by the sole arbitrator / umpire as the case may be. The law applicable shall be Indian law and the venue of Arbitration shall be at Chennai. The Courts in Chennai alone shall have sole and exclusive jurisdiction to try all consequential proceedings arising from the said award / arbitration proceedings.”

2. Invoking said clause upon disputes arising between the parties, the petitioner issued notice dated 12.10.2022 under Section 21 of the Arbitration and Conciliation Act, 1996. Upon receipt thereof, by reply dated 05.11.2022, the respondent refused to consent to the person proposed by the petitioner and instead called upon the petitioner to nominate three persons so as to enable the respondent to agree on the sole arbitrator.

3. Thus, parties agree that the joint development agreement provides for dispute resolution through arbitration by a sole arbitrator.

4. In the above facts and circumstances, this petition is allowed by appointing Mr.M.K.Kabir, Senior Advocate, Mobile No.9840044258, as the sole arbitrator. Learned arbitrator is requested to enter upon reference and adjudicate the dispute. The fees and expenses of arbitration shall be fixed by learned arbitrator in consultation with the parties. No costs.