Continuing arbitration agreement and live dispute justified appointment of arbitrator under the 1996 Act.

A continuing arbitration agreement existed where the 1 April 2014 contract contained an arbitration clause and later extensions expressly carried forward the parent agreement, keeping the clause alive. The record also disclosed a live contractual dispute, including alleged defaults and retention of goods as security. On that factual basis, the precondition for appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 was satisfied, and an arbitrator was appointed.

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Issues: Whether the parties had a valid and continuing arbitration agreement and whether, in the facts, an arbitrator was liable to be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996.

Analysis: The agreement dated 1 April 2014 contained an arbitration clause providing for reference of disputes to arbitration under the 1996 Act. The agreement was extended on multiple occasions, and each extension referred back to the parent agreement, showing continuation of the contractual arrangement and the arbitration clause. The material on record showed the existence of a live dispute between the parties arising out of the contractual relationship, including issues concerning defaults and retention of goods as security. On that basis, the precondition for exercise of power under Section 11(6) stood satisfied.

Conclusion: The request for appointment of an arbitrator was allowed, and an arbitrator was appointed.

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