Multiple choice

In an arbitration between two parties before an arbitrator appointed by the chief justice of the high court (in exercise of powers under section 11 of the Arbitration and Conciliation Act, 1996), the rival parties have filed claims against each other. When the arbitration was at an advanced stage, the parties were of the opinion that the arbitration is likely to reject the claims/counter claims of both the parties. The parties jointly inform the arbitrator that they are not willing for arbitration before him and stop appearing before him. The parties thereafter

  1. are entitled to appoint another arbitrator and to start arbitration proceedings de novo

  2. are not entitled to a second round, the same being in contravention of public policy, prohibiting forum shopping

  3. are entiled to appoint another arbitrator but the discretion whether to commence the arbitration proceedings de novo or from the stage where left by the earlier arbitrator is of the arbitrator and not of the parties

  4. cannot themselves appoint the second arbitrator and are required to again approach the chief justice for appointement of another arbitrator
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D Correct answer
Explanation

(4) The parties cannot themselves appoint the second arbitrator and are required to again approach the chief justice for appointement of another arbitrator.

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