Statutory ineligibility of arbitrator under Arbitration law renders appointment void unless waived by express post-dispute written agreement.

Section 12(5) of the Arbitration and Conciliation Act, 1996 creates a statutory ineligibility that strikes at the validity of the appointment itself. Where the appointing authority falls within the Seventh Schedule, the arbitrator cannot be validly appointed, the mandate terminates under Section 14(1)(a), and the controversy may be decided under Section 14(2). The challenge procedure under Sections 12(4) and 13 concerns doubts about independence or impartiality, not statutory ineligibility. Waiver of Section 12(5) is possible only by an express written agreement entered into after disputes have arisen; it cannot be inferred from conduct, appointment letters, or participation in proceedings.

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Issues: Whether an arbitrator appointed by a person rendered ineligible under Section 12(5) of the Arbitration and Conciliation Act, 1996 was void in law and whether the proviso to Section 12(5) was waived by an express agreement in writing.

Analysis: Section 12(5) creates a statutory ineligibility that goes to the root of the appointment. A person falling within the Seventh Schedule cannot be appointed as an arbitrator, and such ineligibility results in de jure inability under Section 14(1)(a), so the mandate terminates and the Court may decide the controversy under Section 14(2). The challenge mechanism under Sections 12(4) and 13 applies to doubts about independence or impartiality, not to statutory ineligibility under Section 12(5). The proviso to Section 12(5) permits waiver only by an express agreement in writing made after disputes have arisen; waiver cannot be inferred from conduct, appointment letters, or participation in proceedings. The appointment made by the ineligible managing director was therefore void ab initio, and no express written waiver was shown.

Conclusion: The appointment of the arbitrator could not stand, the mandate had terminated, and the appeals succeeded.

Ratio Decidendi: Where the appointing authority itself is statutorily ineligible under Section 12(5), any appointment made by it is void and the arbitrator's mandate terminates under Section 14; waiver of such ineligibility is possible only by an express post-dispute written agreement.

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