AIR 2001 SUPREME COURT 358 ::2000 AIR SCW 4524 ::AIROnline 2000 SC 165 ::AIROnline 2000 SC 751 ::(2001) WLC (SC)Civil 32 ::2001 (1) SCC 509 ::(2001) 1 Mad LJ 184 ::(2001) 1 Rec Civ R 406 ::(2000) 7 Scale 724 ::(2000) 8 Supreme 145 ::(2000) 3 Arbi LR 701 ::(2001) 2 Andh LT 8 ::(2001) 1 ICC 722 ::(2001) 104 Com Cas 29 ::(2001) 1 Andh LD 51 ::(2000) 3 JT (Supp) 313 ::(2000) 3 JT (Supp) 257

Supreme Court Of India

Hon'ble Judge(s): M. Jagannadha Rao , J

(A) Arbitration and Conciliation Act (26 of 1996) , S.11(9)— Appointment of arbitrator - Court not compelled to appoint an arbitrator not belonging to nationality of either parties. When a foreign company has a dispute with an Indian national and approaches an Indian Court, it is not mandatory for the Court under S. 11(9) of the Indian Arbitration and Conciliation Act, 1996, to appoint an arbitrator who does not belong to the respondent's (i. e. Indian) nationality where the foreign company has no objection. However when Indian Judge appointed as an arbitrator. While nationality of the arbitration is a matter to be kept in view, it does not follow from S. 11(9) that then proposed arbitrator is necessarily disqualified because he belongs to the nationality of one of the parties. In view of the fact that the 1996 Act is based on UNCITRAL Model law which in Art. 6(4) only speaks of "taking into account" the nationality is one of factors the word 'may' in S. 11(9) of the Act is not intended to be read as 'must' or 'shall'. The provision is not mandatory. In case the party who belongs to a nationality other than that of the proposed arbitrator, has no objection, the Chief Justice of India (or his nominee) can appoint an arbitrator belonging to a nationality of one of the parties. In case there is objection by one party to the appointment of an arbitrator belongin....