The question before the Delhi High Court was whether appointment of an arbitrator through an arbitration institution amounts to unilateral appointment of an arbitrator.

After examining the arbitration clause, the Court held that the appointment of the arbitrator was made by the institution which was designated as the appointing authority by mutual consent in the agreement.

The Court concluded that such an appointment would be a valid appointment in terms of Section 11 and does not fall foul of Section 12(5) of the Arbitration and Conciliation Act, 1996.

[Note: Parties must adopt an unambiguous named institutional arbitration clause in all prospective agreements. Click here for a model arbitration clause]