New Delhi, June 16 -- Is an ad-hoc designation by courts of an institution for arbitration susceptible to challenge on grounds of procedure? In other words, what is the extent of a court's liberty to select institutions for arbitration?

Institutional arbitration assumes significance owing to its recognition as being akin to courts. Arbitral proceedings and tribunals are considered quasi-judicial, but the institutions themselves are not quasi-courts. What this means is that without party consent, the institutions have no independent judicial sanctity and only play a supporting role.

Institutional appointments hinge on party autonomy, as per the court's 'appointment of arbitrators' scheme. The law stipulates that the concerned chief justi...