M/S. Gas Authority Of India Ltd. And Anr vs M/S. Keti Construction (I) Ltd. And Ors

The Supreme Court held that under Section 34 of the Arbitration and Conciliation Act, 1996, a party's failure to respond to a notice invoking arbitration within the stipulated time forfeits its right to nominate an arbitrator. The Court found that the appointment of Justice N.N. Goswami (Retd.) by the appellant was invalid as it contravened the agreement terms, leading to the setting aside of the arbitrator's award. Consequently, the Court upheld the Division Bench's decision to direct the parties to proceed with arbitration under Brig. Nardip Singh (Retd.).