STATE OF RAJASTHAN vs M/S CHIESEL & HAMMER CONSTRUCTION CO.

The Supreme Court addressed the issue of arbitration under the Arbitration and Conciliation Act, 1996, specifically Section 11(6) regarding the appointment of an arbitrator. The Court upheld the High Court's decision to appoint an arbitrator despite the State of Rajasthan's objections, emphasizing that the dispute could not be resolved solely through the Empowered Standing Committee as per Clause 23 of the Agreement. The Court affirmed the appointment of Shri Bhagwan Das Gupta as the sole arbitrator, thereby allowing the arbitration process to proceed.