If one party refuses to participate in the arbitrator appointment process, the other party can approach the relevant court (High Court or Supreme Court for international commercial arbitration) to request the appointment of an arbitrator. This is done under Section 11 of the Arbitration and Conciliation Act, 1996. The court will then appoint an arbitrator, ensuring the process continues despite the other party's non-cooperation.
Steps to Take When the Other Party is Uncooperative:
1. Review the Arbitration Agreement:
Check for any specific procedures outlined for arbitrator appointment within the agreement.
2. Attempt Amicable Resolution:
Initiate a discussion or negotiation with the other party to resolve the issue of arbitrator appointment amicably.
3. File a Petition with the Court:
If amicable resolution fails, file a petition under Section 11 of the Arbitration and Conciliation Act, 1996, with the appropriate court (High Court for domestic and Supreme Court for international commercial arbitration).
4. Specify the Need for Appointment:
In the petition, clearly state the existence of a valid arbitration agreement, the dispute, and the other party's failure to cooperate in appointing an arbitrator.
5. Request Court Appointment:
Request the court to appoint an arbitrator based on the grounds of the other party's non-cooperation.
6. Consider an Arbitral Institution:
If the arbitration agreement designates an arbitral institution, approach them for appointment if the other party is uncooperative.
1. Check the Arbitration Agreement
See if it specifies a procedure for appointing arbitrators (e.g., one arbitrator each, or a named institution).
Follow the procedure strictly.
2. Issue a Formal Notice
Send a written request to the other party asking them to appoint an arbitrator within 30 days (Section 11(4)).
Mention that failure to do so will lead to court intervention.
3. Wait for 30 Days
If the other party fails to respond or rejects the request within 30 days, you can take the next legal step.
4. Apply to Court (Section 11 of the Act)
File a petition under Section 11:
- High Court (for domestic arbitration) or
- Supreme Court (for international commercial arbitration)
The court will then appoint the arbitrator on behalf of the defaulting party.
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