Delhi High Court Upholds Setting Aside of Arbitral Award; No Waiver of Section 12(5) by Conduct

Case Snapshot

Case Name: M/s Ahluwalia Contracts (India) Limited v. Airports Authority of India

Citation / Neutral Citation: 2026:DHC:8252-DB

High Court: High Court of Delhi

Bench: Hon'ble The Chief Justice and Hon'ble Mr. Justice Tejas Karia

Date of Judgment: 24th September, 2026

Area of Law: Arbitration and Conciliation Act, 1996; Section 12(5); Unilateral Appointment; Waiver

Judgment Headline

Unilateral arbitrator appointment invalid; participation in proceedings does not waive Section 12(5) objection.

The Judgment in One Line

Delhi High Court dismisses appeal, holding that AAI's unilateral appointment of the Sole Arbitrator was invalid as there was no express written waiver under Section 12(5) of the Arbitration Act.

Why This Judgment Matters

This judgment reinforces the mandatory nature of Section 12(5) of the Arbitration and Conciliation Act, 1996. It establishes that waiver of the ineligibility of an arbitrator can only be by an express agreement in writing, subsequent to the disputes having arisen. Neither participation in

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