Arbitration and Conciliation Act, 1996

Querist : Anonymous (Querist) 06 October 2010 This query is : Resolved
Dear All,

In case the agreement amongst the parties provides for the appointment of a sole arbitrator under which provision the same can be agitated and the other party can also rightfully appoint second Arbitrator. What are the modalities for the same - is there any limitation period - under what time limit the both arbitrators have to appoint an Umpire.

Thanking you in advance

Best Regards

Anonymous

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Amita Chaudhary (Expert) 06 October 2010
Hello Mr. Anonymous

well the in case each party has to appoint one arbitrator then once any party invokes the arbitration agreement and appoints arbitartor giving sufficient notice to other side then the other side gets 30 days time to appoint their arbitrator and such appointment of arbitrator should be with the consent of the arbitrators, who have been appointed arbitartor.

That the two arbitartors to decide on the third arbitrator within 30 days thereafter. in case they fail to do so then either party aggrived by the same can approach the Hon'ble High Court for appointment of arbitrator. the relevant provision of the arbitartion act is quoted below for your reference;

11.Appointment of arbitrators.- (1) A person of any nationality may be an arbitrator, unless otherwise agreed by the parties.
(2) Subject to sub-section (6), the parties are free to agree on a procedure for appointing the arbitrator or arbitrators.
(3) Failing any agreement referred to in sub-section (2), in an arbitration with three arbitrators, each party shall appoint one
arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator.
(4) If the appointment procedure in sub-section (3) applies and-
(a) a party fails to appoint an arbitrator within thirty days from the receipt of a request to do so from the other party; or
(b) the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment,
the appointment shall be made, upon request of a party, by the Chief Justice or any person or institution designated by him.
(5) Failing any agreement referred to in sub-section (2), in an arbitration with a sole arbitrator, if the parties fail to agree on the
arbitrator within thirty days from receipt of a request by one party from the other party to so agree the appointment shall be made,
upon request of a party, by the Chief Justice or any person or institution designated by him.
(6) Where, under an appointment procedure agreed upon by the parties,-
(a) a party fails to act as required under that procedure; or
(b) the parties, or the two appointed arbitrators, fail to reach an agreement expected of them under that procedure; or
(c) a person, including an institution, fails to perform any function entrusted to him or it under that procedure,
a party may request the Chief Justice or any person or institution designated by him to take the necessary measure, unless the
agreement on the appointment procedure provides other means for securing the appointment.
(7) A decision on a matter entrusted by sub-section (4) or sub-section (5) or sub-section (6) to the Chief Justice or the person or
institution designated by him is final.
(8) The Chief Justice or the person or institution designated by him, in appointing an arbitrator, shall have due regard to-
(a) any qualifications required of the arbitrator by the agreement of the parties and
(b) other considerations as are likely to secure the appointment of an independent and impartial arbitrator.
(9) In the case of appointment of sole or third arbitrator in an international commercial arbitration, the Chief Justice of India or the
person or institution designated by him may appoint an arbitrator of a nationality other than the nationalities of the parties where the
parties belong to different nationalities.
(10) The Chief Justice may make such scheme as he may deem appropriate for dealing with matters entrusted by sub-section (4)
or sub-section (5) or sub-section (6) to him.
(11) Where more than one request has been made under sub-section (4) or sub-section (5) or sub-section (6) to the Chief Justices
of different High Courts or their designates, the Chief Justice or his designate to whom the request has been first made under the
relevant sub-section shall alone be competent to decide on the request.
(12) (a) Where the matters referred to in sub-sections (4), (5), (6), (7), (8) and (10) arise in an international commercial arbitration
the reference to "Chief Justice" in those sub-sections shall be construed as a reference to the "Chief Justice of India".
(b) Where the matters referred to in sub-sections (4), (5), (6), (7), (8) and (10) arise in any other arbitration, the reference to "Chief
Justice" in those sub-section shall be construed as a reference to, the Chief Justice of the High Court within whose local limits the
principal Civil Court referred to in clause (e) of sub-section (1) of section 2 is situate and, where the High Court itself is the "Court
referred to in that clause, to the Chief Justice of that High Court.