In Brief
A contractor and the Rajasthan Housing Board disputed construction work payments. The contractor invoked court proceedings to appoint an arbitrator under Section 11 of the Arbitration Act after the Board failed to constitute the dispute resolution committee. The court appointed an arbitrator, the Board did not challenge this order, and an award was issued. The Board later challenged the award, arguing the contract's dispute clause was not a valid arbitration clause. Lower courts agreed and set aside the award. The Supreme Court reversed this, holding that under the pre-2015 arbitration law, a court's order appointing an arbitrator implicitly decides the arbitration agreement's validity. Once accepted without appeal, this order binds the parties permanently—they cannot later challenge it. The Court remitted other objections for reconsideration.
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