Sole Arbitrator's Appointment By One Party Due To Other Party's Inaction After Notice Is Not Unilateral: Telangana High Court

The Telangana High Court has clarified that the appointment of a sole arbitrator by one party, when the other party fails to act after receiving proper notice, does not constitute a "unilateral appointment" that would automatically invalidate an arbitral process. Consequently, the High Court ruled that the enforcement of a foreign arbitral award cannot be refused on this specific ground. This decision provides crucial clarity on the procedures for appointing arbitrators, particularly when one party is unresponsive. It reinforces the principle that a party's inaction after due notification can lead to consequences, including the other party proceeding with arbitration. This judgment aims to prevent parties from deliberately stalling arbitration proceedings and upholds the enforceability of awards when appointments are made in adherence to a contract and proper notice.