De-Jure Ineligibility To Act As Arbitrator U/S 12(5) Of Arbitration Act Can Be Waived Only By Express Agreement In Writing: Delhi High Court
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De-Jure Ineligibility To Act As Arbitrator U/S 12(5) Of Arbitration Act Can Be Waived Only By Express Agreement In Writing: Delhi High Court

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The Delhi High Court bench of Justice Sachin Datta affirmed that de jure ineligibility to act as an arbitrator can only be waived, after dispute having arisen, by the parties by an express agreement in writing under proviso to section 12 of the Arbitration Act. The court referred to the Delhi High Court judgment in Reliance Infrastructure Limited v. Madhyanchal Vidyut Vitran Nigam Limited, 2023 wherein it was held that when the contract contains an arbitration clause that specifies a "venue", thereby anchoring the arbitral proceedings thereto, then the said "venue" is really the "seat" of arbitration. The court further referred to the Supreme Court judgment in 'Bharat Broadband Network Limited v. United Telecoms Limited', wherein it was held that What is clear, therefore, is that where, under any agreement between the parties, a person falls within any of the categories set out in the Seventh Schedule, he is, as a matter of law, ineligible to be appointed as an arbitrator.The only way in which this ineligibility can be removed, again, in law, is that parties may after disputes have arisen between them, waive the applicability of this sub-section by an "express agreement in writing" as per proviso to section 12 of the Act. The court while applying the above ration to the facts of the present case observed that the letter dated 04.12.2019 and the proceedings dated 24.12.2019 clearly do not qualify as an 'express agreement in writing'.

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