M/S. GAS AUTHORITY OF INDIA LTD. vs M/S. KETI CONSTRUCTION (I) LTD. .

The Supreme Court held that under Section 34 of the Arbitration and Conciliation Act, 1996, the failure of the appellant to respond to the notice for arbitration within the stipulated time resulted in the forfeiture of its right to nominate an arbitrator. The Court found that the Division Bench of the Delhi High Court erred in setting aside the arbitrator's award, which was a 'no claim award', and directed that the arbitration should proceed with Brig. Nardip Singh (Retd.) as the arbitrator. The appeal was allowed, reinstating the arbitrator's award and emphasizing the importance of adhering to arbitration clauses in contracts.