In Dakshin Shelters Ltd v Geeta Johari, the Supreme Court ruled that a party can approach a court for appointment of an arbitrator under the Arbitration and Conciliation Act, 1996, if the opposing party fails to appoint an arbitrator according to their agreement.
The court held that the right of a party to appoint an arbitrator under an agreement ceases after a petition seeking appointment of an arbitrator under section 11(6) of the act has been filed before the court.
Disputes arose between Dakshin Shelters and Johari after they had signed a development agreement in 2006. Invoking the arbitration clause in the agreement in December 2010, Johari nominated a former judge of Andhra Pradesh High Court as her arbitrator and called on Dakshin to nominate its arbitrator.
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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
