B.S. Sandhu vs Government Of India & Ors

The Supreme Court ruled that the provisions of Section 14 of the Arbitration and Conciliation Act, 1996, empower the court to appoint an arbitrator when there is a failure to appoint by the parties. The Court emphasized that the appointment of an arbitrator is a judicial function and must be done in accordance with the principles of natural justice. The judgment clarified that the court's role is to ensure that the arbitration process is not hindered by the parties' inaction, thereby upholding the sanctity of arbitration as a dispute resolution mechanism.