Arbitrator appointment rights lapse after a Section 11 petition is filed, enabling court appointment of an independent sole arbitrator.

Under Section 11(6) of the Arbitration and Conciliation Act, 1996, the contractual right to appoint an arbitrator ceases once the requesting party files a petition for court appointment, unless a valid appointment had already been made. The Court found no concrete prima facie material that ongoing discussions on the balance payment claim had continued so as to preserve the respondent's delayed appointment, and noted that the appointment was made only after the petition was filed. The belated appointment was therefore held invalid, and the Court appointed an independent sole arbitrator.

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Issues: Whether the respondent had forfeited its right to appoint an arbitrator after expiry of the statutory period and whether the Court should appoint an independent sole arbitrator.

Analysis: The petition arose under Section 11(6) of the Arbitration and Conciliation Act, 1996. The Court found no concrete prima facie material to show that meaningful discussions on the petitioner's balance payment claim had continued so as to save the respondent's delayed appointment. It noted that the respondent itself had appointed an arbitrator only after the petition was filed. Applying the settled principle that the power to appoint an arbitrator under the agreement ceases once the requesting party moves the Court under Section 11(6), the Court held that the belated appointment by the respondent was not valid. Reference was also made to the statutory scheme governing appointment procedure and the effect of delay under the arbitration clause.

Conclusion: The respondent had forfeited its right to appoint the arbitrator, and the Court appointed an independent sole arbitrator.

Ratio Decidendi: Under Section 11(6) of the Arbitration and Conciliation Act, 1996, if the opposite party does not validly appoint an arbitrator before the Section 11 petition is filed, its contractual right to make the appointment ceases and the Court may appoint an independent arbitrator.

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