M/S SHREE VISHNU CONSTRUCTIONS vs THE ENGINEER IN CHIEF MILITARY ENGINEERING SERVICE

The Supreme Court examined whether the refusal to appoint an arbitrator, based on the appellant's acceptance of the final bill and issuance of a 'no further claim' certificate, was justified under Section 11 of the Arbitration Act, 1996. The Court emphasized that the existence of a dispute is essential for arbitration to proceed and that acceptance of final payment and no claim certificate may bar subsequent claims. The Court upheld the High Court's decision to refuse arbitration, affirming that the prior settlement and waiver of claims preclude the appointment of an arbitrator. The judgment clarifies the importance of genuine disputes for arbitration proceedings.