M/S. Ambica Construction vs Union Of India

The Supreme Court held that under Section 11 of the Arbitration and Conciliation Act, 1996, a party can seek the appointment of an arbitrator when there is a failure to resolve disputes amicably. The Court emphasized that the absence of a response from the respondent to the appellant's application for arbitration constituted a tacit acceptance of the need for arbitration. The Court directed the appointment of an arbitrator to resolve the disputes arising from the contract between the parties, thereby upholding the appellant's right to seek arbitration despite the respondent's inaction.