1. The present application has been filed under Section 11(5) of
the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the
Act’) praying for appointment of a Sole Arbitrator to adjudicate upon the
disputes which have arisen between the parties.
2. Learned counsel for the applicant has caused appearance
through video conferencing and submitted that an appointment letter dated
04.09.2023 (Annexure P-2) was issued to the applicant by the respondent
vide which he was appointed as Senior Manager (Launching & Erection) in
Grade M2. The said appointment letter contains a valid arbitration clause
under the heading “Disputes & Arbitration” which provides that any dispute
or difference or claim arising in connection with this contract shall be
resolved by reference to arbitration by a Sole Arbitrator to be appointed by
the Company at its sole discretion. It further provides that the arbitration
proceedings shall be governed by the Arbitration and Conciliation Act and
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the venue of the arbitration shall be Panchkula. He further submitted that the
unilateral appointment of the Sole Arbitrator at the discretion of the
respondent-Company is not permissible under the law in view of the
amendment of the Act which was carried out in the year 2015 whereby
Section 12(5) of the Act was added as well as the law settled by Hon’ble
Supreme Court in “Perkins Eastman Architects DPC Vs. HSCC (India) Ltd.”,
2020(20) SCC 760. He also submitted that a notice under Section 21 of the
Act invoking the aforesaid arbitration clause was issued to the respondents
by way of a registered A.D. Post dated 05.06.2025 vide Annexure P-9, but
the Arbitrator could not be appointed by mutual consent. Therefore, the
present application has been filed under Section 11 of the Act for appointment
of an independent Sole Arbitrator.
