Waiver in arbitration: unprotested participation can bar later jurisdictional objections where only contractual defects are involved.

A party that knowingly participates without protest in arbitration proceedings continued by an arbitrator after transfer may waive a contractual objection and be precluded from later challenging the award. The distinction is between objections arising from the parties' agreement and objections founded on breach of a mandatory statutory provision: waiver and acquiescence can defeat the former, but not the latter because there is no estoppel against statute. On the stated facts, the continuation of the proceedings was not contrary to any mandatory provision and involved only a contractual objection, so the challenge to the award was not sustainable.

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Issues: Whether, after participating without protest in arbitration proceedings continued by an arbitrator after his transfer, a party can later object that the award was without jurisdiction and liable to be set aside under Section 30 of the Arbitration Act, 1940.

Analysis: The grounds of objection under Section 30 to a reference, arbitration proceedings, and award were classified into two categories: those arising from the parties' agreement and those arising from law. Where the objection stems from the agreement between the parties, a party who knowingly participates in the proceedings without protest and takes a chance on the result may be held to have acquiesced and waived the objection. Where the objection is founded on breach of a mandatory statutory provision, participation does not create estoppel because there can be no estoppel against statute. If the infraction is only of a directory provision, the objection may be lost by unprotested participation. On the facts, the continuation of the proceedings by the transferred arbitrator was not contrary to any mandatory provision of law and at the highest involved a contractual objection, which was waived by the parties' conduct.

Conclusion: The objection to the award was not sustainable and the award could not be set aside on the ground of the arbitrator's continuance after transfer; the challenge failed in favour of the appellant.

Ratio Decidendi: A party that knowingly participates without protest in arbitration proceedings affected only by an objection arising from agreement, and not by breach of a mandatory statutory bar, is precluded by waiver and acquiescence from later challenging the validity of the proceedings or the award.

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