Replacement of arbitrator

2018 PLD 1 ISLAMABAD Judicial Precedent

Ss. 11, 12 & 20ArbitrationReplacement of arbitratorPrincipleMatter was referred to arbitral tribunal comprising of two members appointed with consent of parties

Trial Court, on application under Ss.11 & 12 of Arbitration Act, 1940, removed arbitral tribunal and appointed a sole arbitrator

Validity

Where an arbitrator appointed by a party was removed under S. 11 of Arbitration Act, 1940, court was not bound to ask that party whose nominee had been removed to nominate another person to replace removed arbitrator

Court was also not bound to appoint nominee of party to replace removed arbitrator

Court could ask the party whose nominee had been removed to suggest names of suitable persons so as to enable the court to fill up vacancy caused by order of removal of an arbitrator

Court had to make the final choice for appointment of arbitrator

Court in appointing a sole arbitrator after removing two member arbitral tribunal, was not bound to appoint a retired Judge of the Supreme Court at instance of party

No infirmity existed in order of the Trial Court appointing sole arbitrator and fixing his fee which both parties to dispute were bound to pay

Two membered arbitral tribunal was correctly removed by Trial Court and sole arbitrator was correctly appointed in exercise of powers conferred under S.12(2)(a) of Arbitration Act, 1940

Revision was dismissed in circumstances.