Arbitration Act, 1940 (10 of 1940), Section 8 -- Arbitration and Conciliation Act, 1996 (26 of 1996), Section 15(2) -- Code of Civil Procedure Code, 1908 (V of 1908), Section 89 – Appointment of arbitrator – Substitute Arbitrator -- Section 89 of the CPC specifically provides that a Court hearing a suit may formulate terms of settlement between the parties and may either settle the same or refer the same for settlement by conciliation, judicial settlement, mediation or arbitration – Following the mandate of Section 89, the High Court disposed of the suit between the parties by recording the settlement between the parties in clauses 1 to 7 of the consent terms and by referring the remaining disputes to arbitration -- Therefore it is clear that it is the High Court that was the appointing authority which had in fact appointed arbitrator in terms of clause 8 of the consent terms – Lateron High Court correctly appointed another independent retired Judge as substitute arbitrator in terms of Section 15(2) of the Arbitration Act, 1996 -- Object of speedy resolution of disputes by arbitration would best be sub-served by a substitute arbitrator continuing at the point at which the earlier arbitrator has left off.

(Para 21,22)