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Issues: Whether, on the named arbitrator declining to act, a substitute arbitrator ought to be appointed under the partnership deed and the Arbitration and Conciliation Act, 1996.
Analysis: The partnership deed contained an arbitration clause providing for reference of disputes to a named sole arbitrator, and, if he was unavailable or declined to act, for appointment of another arbitrator. The named arbitrator had declined to take up the arbitration, leaving the contractual mechanism for substitution to operate. In these circumstances, the application for appointment of an arbitrator was found fit for acceptance.
Conclusion: A retired Judge of the Court was appointed as arbitrator, with liberty to determine his fees. The application was allowed.
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