Synopsis

The Public Works Department (PWD) challenged an arbitral award passed by a sole arbitrator appointed by the Chief Engineer (Projects), PWD, under Clause 25 of the General Conditions of Contract (GCC). The PWD argued that the appointment was unilateral and therefore void ab initio under Section 12(5) of the Arbitration Act. The respondent contended that the PWD had participated in the arbitration without objection, thereby waiving the right to challenge. The High Court set aside the award, holding that a unilateral appointment by an interested party is per se invalid, and that waiver under the proviso to Section 12(5) requires an “express agreement in writing” after the dispute has arisen – participation in proceedings or mere silence does not constitute valid waiver. The court relied on Bhadra International, Bharat Broadband, and the Constitution Bench decision in CORE v. ECI SPIC SMO MCML.

Court: High Court of Delhi at New Delhi

Coram: Hon’ble Mr. Justice Harish Vaidyanathan Shankar (Single Judge)

Date of Decision: 29th April 2026

Citation: O.M.P. (COMM) 111/2024 (2026:DHC:3715)

Core Law: Arbitration and Conciliation Act, 1996 – Sections 12(5), Seventh Schedule, proviso (express agreement in writing); Unilateral appointment of arbitrator.

1. Heading of the judgment

High court of delhi at new delhi

O.m.p. (comm) 111 of 2024

Public works department education west division (n) through executive engineer (petitioner) vs. M/s tewatia construction private limited through its director (respondent)

Coram: hon’ble mr. justice harish vaidyanathan shankar

Date: 29th april, 2026

2. Legal framework

Major laws and provisions involved:

• Arbitration and conciliation act, 1996 – section 12(5) (ineligibility of arbitrators falling under Seventh Schedule), proviso (waiver by express agreement in writing after disputes arise)

• Seventh schedule – categories of relationship that disqualify an arbitrator

• General conditions of contract (gcc) – clause 25(ii) (appointment of sole arbitrator by Chief Engineer)

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