(1) If the Commission decides to refer the matter to arbitration by a person or persons other than the Commission the reference shall be -
(a) to a sole arbitrator if the parties to the dispute agree on the name of the sole arbitrator;
(b) if the parties are unable to agree on the name of the arbitrator, to a sole arbitrator to be designated by the Commission or to three persons as the Commission may direct taking into account the nature of the dispute and the value involved and, if the decision is to refer to three arbitrators, one to be nominated by each of the parties to the dispute and the third by the Commission:
Provided that if any of the parties fails to nominate the arbitrator or if any arbitrator, nominated by the parties or the Commission, fails or neglects to act or continue as arbitrator, the Commission shall be entitled to nominate any other person in his place.
(2) The Commission shall not nominate a person as arbitrator to whom any of the parties to the arbitration has a reasonable objection on grounds of possible bias or similar such reasons and the Commission considers the apprehension to be justified.