Substitute arbitrator appointment must follow the original contractual mechanism; Section 11(6) is unavailable absent failure to act under the agreement.

On the resignation of an originally appointed arbitrator, the substitute arbitrator must be appointed under the same mechanism that governed the original appointment, including the arbitration agreement itself. Section 15(2) of the Arbitration and Conciliation Act, 1996, was read as requiring continuation of the agreed appointment procedure, so where the Managing Director was empowered to make the original appointment, that contractual power also governed substitution. As there was no failure to act under the arbitration agreement, recourse to the Chief Justice under Section 11(6) was not available.

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Issues: Whether, on the resignation of the originally appointed arbitrator, the Managing Director could validly appoint a substitute arbitrator under the arbitration agreement read with Section 15(2) of the Arbitration and Conciliation Act, 1996, and whether the Chief Justice could be moved under Section 11(6) of that Act for appointment of a substitute arbitrator.

Analysis: Section 15(1)(a) applies when an arbitrator withdraws, and Section 15(2) requires the substitute arbitrator to be appointed according to the rules applicable to the appointment of the original arbitrator. The expression "rules" was understood to include the appointment mechanism contained in the arbitration agreement itself, and not merely statutory rules or rules framed under the Act. Since the Managing Director was originally empowered by the agreement to make the appointment, that contractual power continued to govern the substitution. There was no failure by the concerned party to act in terms of the arbitration agreement, and therefore the jurisdiction under Section 11(6) was not attracted.

Conclusion: The contractual appointment of the substitute arbitrator was valid, and recourse to the Chief Justice under Section 11(6) was unnecessary and unavailable.

Final Conclusion: The petition challenging the appointment of the substitute arbitrator failed, and the dismissal of the challenge was sustained.

Ratio Decidendi: Under Section 15(2) of the Arbitration and Conciliation Act, 1996, a substitute arbitrator must be appointed in accordance with the original appointment mechanism provided by the arbitration agreement or applicable institutional rules, and Section 11(6) is not attracted unless there is a failure to act in terms of that agreement.

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