Facts
The Applicant invoked Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator in respect of disputes arising from the agreement at Annexure A/2.
Source reference: para. 2–3Clause 62 of the agreement provided for arbitration by the Director (Marketing) of Indian Oil Corporation Limited or an officer nominated by him, and further stated that no person other than such officer could act as arbitrator.
Source reference: para. 4The Applicant had earlier challenged this unilateral appointment mechanism in WPC No. 6591 of 2025; the writ petition was dismissed on 17 December 2025 with liberty to seek appointment of an arbitrator under Section 11(6).
Source reference: para. 5In the present proceedings, the Respondents accepted that an arbitrator could be appointed to resolve the dispute.
Source reference: para. 6Issues
Whether the Applicant was entitled to seek appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 in respect of disputes arising from the agreement.
Source reference: para. 2–3, 5Whether, notwithstanding Clause 62 of the agreement prescribing appointment by the Director (Marketing) or his nominee, an independent sole arbitrator could be appointed by the High Court.
Source reference: para. 4, 6–7Law Applied
The Court applied Section 11(6) of the Arbitration and Conciliation Act, 1996, which enables the Court to take necessary measures for appointment of an arbitrator where the agreed appointment procedure has not resulted in appointment of the arbitral tribunal.
Source reference: para. 2It also considered Clause 62 of the agreement, which contained the parties’ arbitration agreement and prescribed a mechanism for appointment of the arbitrator.
Source reference: para. 4The Court ultimately acted on the consent of the parties to appoint a sole arbitrator.
Source reference: para. 6–7Reasoning
The Court found that the Applicant’s claim involved disputes arising out of the agreement containing a valid arbitration clause.
Source reference: para. 3–4Although Clause 62 contemplated appointment by the Director (Marketing) or his nominee, the Applicant had been permitted, following dismissal of the earlier writ petition, to pursue the remedy under Section 11(6).
Source reference: para. 5Since the Respondents agreed that an arbitrator should be appointed, the Court resolved the appointment issue by consensually designating Shri Justice R.C.S. Samant, retired Judge of the Chhattisgarh High Court, as the sole arbitrator.
Source reference: para. 6–7The Court therefore did not undertake an independent adjudication of the validity of the unilateral appointment mechanism.
Source reference: para. 6–7Holding
The application under Section 11(6) was allowed and disposed of by appointing Shri Justice R.C.S. Samant, retired Judge of the Chhattisgarh High Court, as the sole arbitrator to adjudicate the disputes between the parties.
The relevant records were directed to be forwarded to the arbitrator, and his remuneration was left to be settled by mutual consent of the parties.
Source reference: para. 8–9Acts & Sections Cited
1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Arbitration and Conciliation Act, 19961
Original Court PDF
Deendayal SahuvsIndia Oil Corporation Limited
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