Facts & Background:

• MMTC Limited was the Appellant.
• Sterlite Industries (India) Ltd. was the Respondent.
• The Respondent entered into a contract with the Appellant. Disputes arose between the parties regarding non-payment of certain dues under an agreement dated December 14, 1993.
• By a letter dated January 19, 1996, the Respondent invoked arbitration clause and appointed Shri M.N. Chandurkar, former Chief Justice of the Madras High Court, as its arbitrator on February 7, 1996.
• The Appellant, MMTC Ltd., contended that the arbitration clause was inapplicable and refrained from appointing its arbitrator.
• Aggrieved by the Appellant’s inaction, the Respondent preferred an application before the Bombay High Court under the provisions of the Arbitration and Conciliation Act, 1996, for the appointment of an arbitrator.
• The case was filed before the Bombay High Court, where the Appellant raised two objections:

1. The arbitration clause was not applicable.
2. The agreement provided for an even number of arbitrators, which was not permissible under Section 10(1) of the Arbitration and Conciliation Act, 1996 (New Act).

• The High Court rejected both objections and directed Appellant to appoint its arbitrator.
• Hence, the Appellant challenged the High Court's order by special leave before the Supreme Court, arguing the applicability of the New Act to an agreement executed prior to its commencement and contending the appointment process under the arbitration clause.
  

Main Issue:

• Does the Arbitration and Conciliation Act, 1996 apply to the arbitration agreement executed before its commencement, and what effect does it have on the enforceability of such agreement?