Arbitrator nomination under arbitration clauses is normally followed, but independent appointment is permitted where circumstances justify deviation.

Under Section 11(6) of the Arbitration and Conciliation Act, the agreed appointment procedure should ordinarily be followed, and the arbitrator named in the contract is normally appointed. However, the Chief Justice or designate is not mechanically bound by the contractual nomination and may appoint an independent arbitrator where recorded reasons show valid concerns about independence or impartiality, or where other circumstances justify departure, consistent with Section 11(8). The contractual process is therefore respected but not absolute.

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Issues: Whether, in exercising power under Section 11(6) of the Arbitration and Conciliation Act, 1996, the Chief Justice or designate is bound to appoint the arbitrator named in the arbitration agreement, or may appoint an independent arbitrator where the circumstances so require.

Analysis: The agreed appointment procedure is ordinarily to be given effect to, and the named arbitrator is the rule where the contract so provides. However, the power under Section 11(6) is not confined to a mechanical appointment of the named person. Read with Section 11(8), the court may deviate from the contractual designation where the circumstances justify such course, including where there are valid reasons to doubt independence or impartiality, or where other circumstances warrant appointment of an independent arbitrator. The agreed procedure must be respected, but it is not absolute.

Conclusion: The Chief Justice or designate is not invariably bound to appoint the named arbitrator and may appoint an independent arbitrator in appropriate circumstances. The appeal fails.

Ratio Decidendi: While the appointment procedure in an arbitration clause should normally be followed, the court exercising power under Section 11(6) may depart from the named appointment and appoint an independent arbitrator for recorded reasons where circumstances justify such deviation, subject to Section 11(8).

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