Right To Appoint Arbitrator Is Not Automatically Forfeited After Expiry Of 30 Days From Date Of Demand Made By Other Party: Gauhati High Court

The Gauhati High Court has ruled that a party's right to appoint an arbitrator is not automatically forfeited simply because they failed to do so within the 30-day period after receiving a demand from the other party. The court observed that while the Arbitration and Conciliation Act provides a timeline, a slight delay does not extinguish the right, especially if the other party has not already approached the court for an appointment. This decision emphasizes a more flexible and less pedantic approach to procedural timelines in arbitration. It ensures that a party's right to participate in the formation of the arbitral tribunal is not lost due to minor delays, promoting the core objective of arbitration which is the fair and consensual resolution of disputes. The ruling prevents the opposite party from taking undue advantage of a procedural delay to unilaterally control the appointment process.