Question

A dispute arises between ABC Ltd. and XYZ Pvt. Ltd. regarding arbitration. If the parties fail to agree on the appointment of an arbitrator, which provision of the Arbitration and Conciliation Act, 1996 applies?

• A. Parties must mutually select arbitrator, else arbitration fails
• B. Arbitrator appointed by ICA in all cases
• C. Parties can opt for conciliation instead
• D. Court appoints an arbitrator under Section 11

Hint:

Always remember: Section 11 = Court appointment of arbitrator.

Answer 1

The Correct Option is D

Step 1: Arbitration deadlock.
When parties cannot agree on appointment of arbitrator, law provides an external mechanism.

Step 2: Provision.
Section 11 of Arbitration Act, 1996 empowers courts to appoint an arbitrator.

Step 3: Conclusion.
Thus, the correct answer is option (4).