Neutral nationality in international arbitration is discretionary, not mandatory, when appointing a sole arbitrator.

Section 11(9) of the Arbitration and Conciliation Act, 1996 confers discretion on the Chief Justice or nominee when appointing an arbitrator in an international commercial arbitration. The use of the word "may" means neutral nationality can be considered, but it is not a compulsory requirement that the sole arbitrator be of a nationality other than that of either party. The provision is therefore directory, not mandatory, and does not require "may" to be read as "must" or "shall". A retired Supreme Court Judge was appointed as sole arbitrator, with arbitral costs and remuneration to be fixed by the arbitrator.

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Issues: Whether, in an international commercial arbitration under Section 11(9) of the Arbitration and Conciliation Act, 1996, the Chief Justice or his nominee is bound to appoint a sole arbitrator of a nationality other than that of either party.

Analysis: The provision uses the word "may", which confers discretion rather than imposing an ment. The Court noted that the statutory language does not require the appointment of a neutral-nationality arbitrator as a matter of compulsion. Relying on earlier decisions interpreting the same provision, it was held that the nationality factor may be kept in view, but the provision is not mandatory and does not require the word "may" to be read as "must" or "shall".

Conclusion: Section 11(9) is directory, not mandatory, and the Court was not bound to appoint a sole arbitrator of neutral nationality.

Final Conclusion: The application was allowed and a retired Judge of the Supreme Court was appointed as sole arbitrator, with the arbitral costs and remuneration to be fixed by the arbitrator.

Ratio Decidendi: The word "may" in Section 11(9) of the Arbitration and Conciliation Act, 1996 confers discretion to consider neutral nationality in appointing an arbitrator, but does not make such nationality compulsory.

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