Case Note:

Arbitration - Appointment of Arbitrator- Section 11(6) of the Arbitration and

Conciliation Act, 1996(Act) - No action taken by Appellant after filing petition -
Tribunal constituted in the meantime by Respondent - Appellant disputed Tribunal's
constitution being not nominated in stipulated time - Tribunal proceeded against
Appellant ex-parte - Notice in earlier petition issued after three years of award -
High Court dismissed petition with liberty to Appellant to file objections under
appropriate provisions - Hence, the present appeal - Whether High Court erred in
dismissing the petition seeking appointment of arbitrator?

Facts:

The instant appeal was filed against the order declining to appoint an
Arbitrator.The Appellant had preferred petition seeking appointment of arbitrator.
Thereafter Appellant took no action on the petition. In the meantime Respondent,
responding to Appellant's letter proposed names and names on being consented by
Appellant, tribunal was constituted. This was challenged by Appellant contending
tribunal not nominated within stipulated time. However, the Tribunal proceeded
against Appellant ex-parte. After about three years, Notice in earlier petition
filed by Appellant was issued. High Court dismissed the petition with liberty to
Appellant to file objections under appropriate provisions and hence the present
appeal came to be filed.

Held, while dismissing the Appeal:

After filing of an arbitration petition, the Appellant completely slept over the
matter and the Respondents were never served of any notice of the Arbitration
Petition. At the given time, when the Respondents called upon the Appellant to
suggest and select two names out of the panel of four for constitution of the
Arbitral Tribunal, the Appellant selected two officers. Pursuant thereto, Arbitral
Tribunal was constituted and the Appellant thereafter appeared and submitted his
statement of claim and in furtherance, statement of defence was submitted by the
Respondents.[13]

The fact still remains that except the letter being once sent by the Appellant
informing of the arbitration petition filed under Section 11(6), no steps were
taken thereafter to pursue arbitration application and since the Appellant had not
participated before the Arbitral Tribunal, ex-parte award came to be passed.
Notices were issued for the first time of the arbitration petition almost 3 years
after passing of the ex-parte award.[14]

In the given facts and circumstances, the High Court was not inclined to exercise
its jurisdiction under Section 11(6) of the Act for appointment of an Arbitrator.
[15]

After the application filed for appointment of an Arbitrator, the Respondents

forfeited their right to appoint an Arbitrator but from the facts, no error was
committed by the High Court in dismissing the petition for appointment of an
Arbitrator.