Telangana High Court: Court Can Appoint Arbitrator If Chosen Arbitration Institution No Longer Exists.
Telangana High Cour:ADR In a major clarification that strengthens India's arbitration landscape, the Telangana High Court recently ruled that if the designated arbitral institution mentioned in an agreement ceases to exist , the court has the power to appoint a new arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 . This decision ensures that the dispute resolution process doesn't collapse simply because the agreed-upon arbitration institution is no longer available. What Triggered This Ruling? The case involved a typical arbitration clause found in many commercial contracts. It named a specific arbitral institution to handle any disputes. However, when a conflict actually arose, the institution no longer existed . This raised a critical question: Can the court intervene and appoint an arbitrator when the chosen arbitral institution is defunct? The Telangana HC answered with a resounding yes . What Section 11(6) Says – Simplified...