PARBHAT GENERAL AGENCIES ETC. vs UNION OF INDIA & ANR. ETC.

The Supreme Court held that under Section 8(1)(b) of the Arbitration Act, 1940, an arbitrator can be appointed in place of a designated arbitrator if certain conditions are met, including the existence of an arbitration agreement and the incapacity of the designated arbitrator. The Court found that the trial court and the Judicial Commissioner erred in concluding that the agreement did not allow for the appointment of a new arbitrator. The appeal was allowed, and the matter was remitted to the trial court for appointing a new arbitrator, thereby setting aside the previous orders.