Arbitrator Cannot Be Appointed Unless Arbitration Clause Is Invoked With Proper Notice U/S 21 of A&C Act

The Telangana High Court has ruled that courts cannot appoint an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, unless the arbitration clause has been properly invoked through a valid notice under Section 21.

In this case, the applicant had sent a notice demanding outstanding payment but did not propose an arbitrator or formally invoke the arbitration clause under Section 21 of the Arbitration Act. 

The court emphasized that merely demanding payment does not constitute a valid invocation of arbitration.

Consequently, the application for the appointment of an arbitrator was dismissed.