A valid arbitration agreement and invocation warrant appointment of a sole arbitrator.

The petitioner, a company engaged in managing and operating residential facilities, entered into an agreement with the respondent on 31 December 2019 concerning the operation, maintenance, promotion and marketing of the respondent’s property.

The agreement contained an arbitration clause providing for reference of unresolved disputes to a mutually agreed sole arbitrator after negotiations.

After disputes arose, the petitioner issued a notice invoking arbitration under Section 21 of the Arbitration and Conciliation Act, 1996, but the respondent did not respond.

The petitioner therefore sought appointment of an arbitrator under Section 11(5). The respondent was served with notice of the petition but did not appear.

1. Whether the agreement contained an arbitration clause covering the disputes between the parties.

2. Whether, following invocation of the arbitration clause and the respondent’s failure to respond, a sole arbitrator should be appointed under Section 11(5) of the Act.

Section 11(5) of the Arbitration and Conciliation Act, 1996 provides for court appointment of an arbitrator where the parties’ agreed appointment procedure requires mutual agreement and the parties fail to agree.

Section 21 concerns commencement of arbitral proceedings upon receipt of a request to refer the dispute to arbitration. The court also applied Clause 17.2 of the agreement, which required disputes not settled through negotiations to be referred to a sole arbitrator mutually agreed upon by the parties.

The court found that Clause 17.2 provided for arbitration and that disputes had arisen between the parties in relation to the agreement.

It also noted that the petitioner had invoked the clause by issuing a Section 21 notice, but the respondent neither responded to that notice nor appeared in the petition despite service. In those circumstances, the court concluded that appointment of a sole arbitrator was required to adjudicate the disputes.

The parties’ claims and contentions were left open, and the parties were directed to appear before the Centre’s Director on 23 October 2026 at 11:30 a.m.