K K JOHN vs STATE OF GOA

The Supreme Court interpreted sub-section 8 of Section 16 of the Arbitration Act, 1940, holding that the appointment of a new arbitrator after the resignation of the previous arbitrator was valid under Section 20 of the Act. The Court clarified that the earlier award could not be set aside merely due to the arbitrator's failure to ascertain certain claims, and the High Court's restriction on the scope of the arbitration proceedings was erroneous. The appeal was allowed, affirming the need for a de-novo award to resolve the disputes comprehensively.