Request For Appointment Of Arbitrator, Is Not A Waiver Of Right To Disqualify Under S. 12 (5) Of The Act: Delhi High Court
2 years, 3 months ago

Request For Appointment Of Arbitrator, Is Not A Waiver Of Right To Disqualify Under S. 12 (5) Of The Act: Delhi High Court

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The Delhi High Court has ruled that a unilateral request made by one of the parties for setting the appointment procedure in motion, as provided in the arbitration agreement, would not constitute an agreement falling under the proviso to Section 12 of the Arbitration and Conciliation Act, 1996 to waive off the disqualification contemplated under Section 12. The bench of Justice Yashwant Varma observed that the arbitration agreement conferred the power to appoint a Sole Arbitrator upon the CMD of the respondent Company, who was de jure disqualified from being appointed as an arbitrator by virtue of Section 12 and thus, incapable in law of appointing an arbitrator. The Court held that the arbitration notice issued by the claimant, calling upon the respondent Company to appoint an arbitrator in accordance with the arbitration agreement, cannot be construed as an express agreement between the parties to waive off the disqualification contemplated under Section 12. The petitioner submitted before the High Court that since the CMD of the respondent Company was de jure disqualified, in terms of Section 12 of the A&C Act, from being appointed as an arbitrator, any unilateral appointment made by him would suffer a similar disqualification.

History of this topic

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6 days, 8 hours ago
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