Denel(Propritary Limited) vs Bharat Electronics Ltd.& Anr

The Supreme Court held that under Section 11(6) of the Arbitration and Conciliation Act, 1996, the appointment of an arbitrator is warranted when there is a valid arbitration agreement, as established by the arbitration clause in the purchase orders. The Court found that the refusal of the respondent to pay the petitioner was based on a directive from the Ministry of Defence, which does not negate the obligation to arbitrate disputes arising from contractual agreements. Consequently, the Court appointed a sole arbitrator to resolve the dispute between the parties.