State Of Rajasthan vs M/S. Chiesel & Hammer Const. Company

The Supreme Court addressed the issue of arbitration under the Arbitration & Conciliation Act, 1996, specifically Section 11(6), in the context of a dispute between the State of Rajasthan and a contractor regarding the construction of the Ghar Ganga Aquaduct. The Court upheld the High Court's decision to appoint an arbitrator despite the State's contention that the dispute should be resolved by an Empowered Standing Committee as per Clause 23 of the Agreement. The Court clarified that the appointment of an arbitrator is permissible under the Act, and the orders of the High Court were affirmed, allowing the arbitration process to proceed.