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TMI Blog2006 (7) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... of the High Court under Section 11 sub-Section 5 read with Section 15(2) of the Arbitration & Conciliation Act, 1996 (for short "the Act"), praying that the Chief Justice may appoint a substitute arbitrator to resolve the disputes between the parties. The Chief Justice found that the appointment of the second arbitrator by the Managing Director, after the resignation of the first arbitrator, was valid in law since it was permissible under the contract and the right to make such an appointment was saved by Section 15(2) of the Act. The argument that Section 15(2) of the Act referred to statutory rules providing for appointment of Arbitrators and not to a contractual provision for such appointment was rejected by the learned Chief Justice. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It further held that Section 15(2) covered not only cases of appointments under statutory rules or rules framed under the Act, but it would also take in the terms of the agreement between the parties for appointment of an arbitrator and in that view, the Managing Director, in the case on hand and on the terms of the arbitration agreement, would have the right to appoint a substitute arbitrator. Thus, it was held that the learned Chief Justice was right in rejecting the application made by the petitioner. Thus, the Writ Petition was dismissed. It is this decision of the Division Bench that is sought to be challenged in this petition for special leave to appeal. 4. In our view, the learned Chief Justice and the Division Bench have rightly un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty as per the arbitration agreement, to fulfil his obligation in terms of Section 11 of the Act so as to attract the jurisdiction of the Chief Justice under Section 11(6) of the Act for appointing a substitute arbitrator. Obviously, Section 11(6) of the Act has application only when a party or the concerned person had failed to act in terms of the arbitration agreement. When Section 15(2) says that a substitute arbitrator can be appointed according to the rules that were applicable for the appointment of the arbitrator originally, it is not confined to an appointment under any statutory rule or rule framed under the Act or under the Scheme. It only means that the appointment of the substitute arbitrator must be done according to the origin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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