Question

A dispute arises between ABC Ltd. and XYZ Pvt. Ltd. regarding a contract that both parties had entered into. The agreement includes an arbitration clause, which states that any disputes shall be referred to arbitration. However, the parties fail to agree on the appointment of an arbitrator. Which of the following provisions of the Arbitration and Conciliation Act, 1996 would be applicable to resolve the issue of the appointment of an arbitrator?

• A. The court will appoint an arbitrator under Section 11 if the parties fail to agree on one.
• B. The parties must mutually select an arbitrator, and if they fail, the arbitration will not take place.
• C. The arbitrator must be appointed by the Indian Council of Arbitration (ICA) in all cases.
• D. The parties can resolve the appointment issue by opting for conciliation instead of arbitration.

Answer 1

The Correct Option is A

Section 11 of the Arbitration and Conciliation Act, 1996 provides that if the parties fail to agree on the appointment of an arbitrator within the time agreed upon or within 30 days of the receipt of the request for arbitration, either party may apply to the court to appoint an arbitrator.