Perkins Eastman v HSCC : Is It The End Of Party Appointed Sole Arbitrators?

The issue of appointment of arbitrators under Section 11 of the Arbitration & Conciliation Act, 2016 ("Act"), was discussed by the Supreme Court of India in Perkins Eastman Architects DPC & Anr. v. HSCC (India) Ltd.¹ It ruled on issues of an (i) appointment of an arbitrator by one of the parties or their officers and employees & (ii) whether the Supreme Court can exercise its power under S. 11 when an arbitrator has already been appointed.

Background:

Before to analyzing these issues, a brief narration of the facts is necessary.

A contract was entered into between a 'consortium of applicants' ["Applicant" in the Arbitration Application] and Hospital Services Consultancy Co. Ltd. ["Respondent"]. The contract contained an elaborate 'Dispute Resolution' clause ["Arbitration Clause"]. The Arbitration Clause provided that, (i) any dispute or difference shall be referred to arbitration before a sole arbitrator appointed by the Chief Managing Director ["CMD"] of