This case arose out of two Execution Petitions filed by Sundaram Finance Ltd. before the District Court, Kottayam, seeking enforcement of interim measures granted by an arbitral tribunal under Section 17 of the Arbitration and Conciliation Act, 1996.

In line with the arbitration clause in the loan agreement, the Petitioner had approached the Madras Chamber of Commerce and Industry (MCCI), which was designated in the agreement to appoint a sole arbitrator. The MCCI, acting as an independent institution, appointed the arbitrator accordingly.

Ruling

The Court found that the parties had clearly agreed to resolve disputes through institutional arbitration, not an ad-hoc arrangement. This was a valid exercise of party autonomy under Sections 2(6) and 19(2) of the Act. The arbitrator was nominated by a neutral institution following its own independent procedure and rules, ensuring neutrality and transparency.

Where parties choose to resolve disputes through an institution, the institution’s appointment of an arbitrator pursuant to its rules does not amount to unilateral appointment.