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Issues: Whether the respondent retained the right to appoint a sole arbitrator after the petitioner had invoked arbitration, issued notice, and filed an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, and whether the Court should itself appoint the arbitrator.
Analysis: The respondent did not act on the petitioner's notices demanding appointment of an arbitrator and made the appointment only after the petition under Section 11(6) had already been filed and notice had been issued by the Court. The governing principle is that under Section 11(6), the opposite party's right to make an appointment continues after the initial demand period, but it ceases once the aggrieved party moves the Court seeking appointment. The authorities relied upon by the petitioner were applied to hold that an appointment made after the filing of the Section 11(6) petition is too late. The later decision relied upon by the respondent was distinguished on its facts because there the appointment was made on the very date the application was filed.
Conclusion: The respondent had forfeited its right to appoint the arbitrator, and the petitioner's request for court appointment was accepted.
Final Conclusion: The disputes between the parties were directed to arbitration before a sole arbitrator appointed by the Court, with interim protection continued for a limited period to enable recourse to the arbitral tribunal.
Ratio Decidendi: Under Section 11(6) of the Arbitration and Conciliation Act, 1996, the respondent's right to appoint an arbitrator survives the initial demand period but ceases once the applicant files the petition before the Court seeking appointment.