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Arbitration and Conciliation Act, 1996

(Querist) 07 October 2010 This query is : Resolved 
Dear All,

If the parties to a contract agree for appointment of a sole arbitrator mutually agreed upon and in the eventuality of a dispute if either of the party has invoked and suggested name of its Arbitrator upon which the other party has reverted back by putting forth the name of its Arbitrator.

My question is that by conduct can the parties to a contract (if in case they so mutually agree) can by pass the term of this contract and resort to themselves appointing one arbitrator each who in turn may appoint an umpire/

Is it legaly tenable or they have to approach the court for this purpose.

Thanking you in advance

Best Regards

Daksh
Khaleel Ahmed (Expert) 07 October 2010
Query is not clear. Both parties can appoint arbitrator mutually.
Uma parameswaran (Expert) 07 October 2010
If any of the person gone against the terms of the contract then the validity of the contract shall be depends upon the decision taken by the members in the contract.
H. S. Thukral (Expert) 07 October 2010
By mutual consent they can do so. It will be only modification of earlier agreement. Otherwise either party can approach the Court for appointment of a Sole Arbitrator.
Ms. Khushnuma Khan (Expert) 07 October 2010
It is not proper for the parties to move away from the procedures of appointment laid down in an arbitration clause in an agreement. But f such situation arises then it is always open for either of the parties to move the Civil Courts under section 11 of the Arbitration & Conciliation Act 1996 for appointment of the Arbitrator.

Best Wishes,
Khushnuma
s.subramanian (Expert) 07 October 2010
I agree with Mr.Harbhajan.
Devajyoti Barman (Expert) 07 October 2010
Yes
Advocate. Arunagiri (Expert) 08 October 2010
The terms of the contract can be modified at any point of time by mutual consent. If they provide arbitrator, for each one party, the two arbitrators if they have difference of opinion in making decision, these two arbitrators can appoint an umpire. they have every right to move the civil court in case of dispute in appointing the arbitrator.


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