Synopsis

This judgment by the Delhi High Court sets aside an arbitral award on the ground that the sole arbitrator was appointed unilaterally by the Managing Director (MD) of the respondent, who was an employee of the respondent and thus ineligible to appoint an arbitrator under Section 12(5) of the Arbitration and Conciliation Act, 1996. The court held that the unilateral appointment violated the principle of equal treatment of parties and was void ab initio. It further held that the petitioner's participation in the arbitration or its notice suggesting that the respondent appoint an arbitrator did not constitute an "express agreement in writing" waiving the applicability of Section 12(5). Relying on the recent Supreme Court decision in Bhadra International, the court set aside the award and allowed the petition.

1. Heading for the judgment

Citation: Innovative B2B Logistics Solutions Private Limited v. Central Warehousing Corporation, O.M.P. (COMM) 243/2018, decided on 24.03.2026 (Delhi High Court)
Coram: Hon'ble Mr. Justice Avneesh Jhingan (Single Judge)
Core Law: Arbitration and Conciliation Act, 1996 (Sections 12(5), 14, 15, 34).

Delhi High Court sets aside arbitral award due to unilateral appointment of arbitrator, holds that waiver under Section 12(5) requires express written agreement and cannot be inferred from conduct.

2. Legal framework

This judgment is a significant application of the law on arbitrator ineligibility and the strict requirements for waiver under Section 12(5) of the Arbitration and Conciliation Act, 1996.

• Arbitration and Conciliation Act, 1996:
  Section 12(5): Provides that any perso

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