Once the peremptory time limit provided for the appointment of the arbitrator has expired, the arbitration clause loses its binding effect between the parties, and can no longer be invoked to raise the incompetence of the ordinary judicial authority.
The objection of incompetence based on an institutional arbitration clause, already raised unsuccessfully before the judge who declined jurisdiction, cannot be raised again except through jurisdictional proceedings against the decision of the first judge.
In the absence of literal elements that indicate the intention to resort to contractual arbitration (arbitrato irrituale), it must be held that the clause provides for institutional arbitration, given the legal system's favour for such institution.