The judgement was passed by Delhi Court on the issue of Appointment of
Arbitrators to form an arbitral tribunal.
S.11 of the Act pertains to the procedure to appoint arbitrator. First one is by
an application to the concerned High Court for appointing a sole arbitrator
whereas the second procedure requires that two arbitrators appointed by the
parties to the Arbitration Agreement shall appoint a third presiding arbitrator.
S.14 of the Act deals with the resignation/termination of the appointed
arbitrator. The grounds for resignation are inability to perform the duty de
jure or de facto or where he himself withdraws from the case citing any other
reason. The grounds for termination can relate to the independency or
impartiality of the arbitrator where the parties can terminate the mandate of
It is pertinent to mention here the Judgement of Perkins Eastman. In this
Judgement the Supreme Court has held that a party does not have a sole right in
appointing an arbitrator. The parties individually or together must first
approach the high court for appointment of the arbitrator. Therefore, where an
arbitration clause gives right to only one party to appoint an arbitrator the
party cannot appoint the arbitrator itself and initiate the proceedings.
The Delhi High Court in the Judgement Raksha Vigyan Karamchari Sahkari Awas
Samiti v. Proto Developers and technologies Pvt. Ltd
¯ held that where a
party appoints a sole arbitrator without approaching the court then the
appointment shall be invalidated and the second party has the right to approach
the court under section 14.
The Respondent in this case has solely appointed an arbitrator without court™s
intervention. The Petitioners then approached the Delhi High Court for
appointment of the Arbitrator to which the Respondents objected. However, the
Court in this case dismissed the Section 11 petition with the liberty to the
Petitioner's to approach the court under section 14 of the act. Thereby
rejecting the appointment of the arbitrator by the Respondents and then
replacing the appointment with another arbitrator.
This is perfect example of conversion of section 11 application into section 14
- Perkins Eastman Architechts DPC and Anr. v. HSCC (India) Ltd.
Arbitration Application No. 32 of 2019
- OMP (T) (Comm.) 60/ 2020