In an arbitration between two parties before an arbitration appointed by the Chief Justice of the High Court (in exercise of powers under Section 11 of the Arbitration & Conciliation Act, 1996), the rival parties have filed claims against each other. When the arbitration was at an advanced stage, the parties are of the opinion that the arbitrator is likely to reject the claims/counter claims of both the parties. The parties jointly inform the arbitrator that they are not willing for arbitration before him and stop appearing before him. The parties thereafter:

Option A: Are entitled to appoint another arbitrator and to start arbitration proceedings de novo

Option B: Are not entitled to a second round, the same being in contravention of public policy prohibiting forum shopping

Option C: Are entitled to appoint another arbitrator but the discretion whether to commence the arbitration proceedings de novo or from the stage where left by the earlier arbitrator is of the Arbitrator and not of the parties

Option D: Cannot themselves appoint the second arbitrator and are re- quired to again approach the Chief Justice for appointment of another arbitrator

Correct Answer

Option: a

Explanation

The parties to an arbitration can agree to any terms and are entitled to appoint another arbitrator and can restart the arbitration proceedings any number of times.

Sample Mock Tests for Practice

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