Union Of India & Ors vs M/S Onkar Nath Bhalla & Sons

The Supreme Court held that the appointment of a retired High Court Judge as an arbitrator was improper under the arbitration clause which required an engineer or equivalent. The Court emphasized that the respondent had waived further claims by signing the final bill without protest, thus establishing accord and satisfaction as per the principles laid out in P. K. Ramaiah & Co. v. N.T.P.C. and SBP & Co. v. Patel Engg. Ltd. The appeal was allowed, setting aside the High Court's order appointing the arbitrator.