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Report No. 176

2.8.12 Section 11 (4) and 11 (5):

It has been stated in a majority of cases that the party which receives a notice for appointment of an arbitrator does not send any reply for months altogether. If it is government department or public sector undertaking or a statutory corporation, no one wants to take any responsibility. The other party is thus put in a fix as to whether and when to approach the court under section 11. In fact, after the first party goes to court under section 11 then the above authorities claim that they have right to appoint their own employee as arbitrator.

This type of conduct does not appear to be fair. So far as sec. 11(4) and sec. 11(5) are concerned, the Commission is of the view that the period should be 60 days and should be treated as mandatory. It is, therefore, considered that a provision be made that if, after a request, arbitrators are not appointed within the prescribed time, the right to appointment, if any, conferred on the party to whom notice is issued, shall stand forfeited.

The Arbitration and Conciliation (Amendment) Bill, 2001 Back

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