Prior judicial involvement in connected proceedings does not automatically disqualify an arbitrator under Section 12(5).

Previous judicial ence in connected proceedings did not by itself disqualify the respondent's nominated arbitrator under Section 12(5) read with Item 16 of the Fifth and Seventh Schedules of the Arbitration and Conciliation Act, 1996. The governing test is whether the proposed arbitrator had prior involvement in the same arbitration dispute, or whether circumstances create justifiable doubts as to independence and impartiality. Mere participation as a Judge in an earlier writ proceeding challenging interim orders in the same matter was held not to amount to prior involvement in the arbitration case itself. The objection based on bias was therefore unsustainable, and no ineligibility or disqualification was established.

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Issues: Whether the arbitrator nominated by the respondent was ineligible or disqualified on the ground of previous involvement in the case, attracting Section 12(5) read with Item 16 of the Fifth and Seventh Schedules of the Arbitration and Conciliation Act, 1996.

Analysis: The objection was founded on the fact that the nominated arbitrator had earlier been a member of the Division Bench which decided challenges arising from interim orders passed in the same dispute. The governing test under Section 12(5) and the relevant Schedules is whether the proposed arbitrator had previous involvement in the very case, or whether the circumstances create justifiable doubts as to independence and impartiality. Mere participation as a Judge in an earlier writ proceeding concerning the validity of interim orders passed by the arbitral tribunal does not amount to previous involvement in the arbitration case itself. Item 16 applies where the arbitrator had been involved in the same dispute in some other capacity, not where the person had discharged judicial functions in connected proceedings.

Conclusion: The nominated arbitrator was not shown to be ineligible or disqualified, and the apprehension of bias was held to be unsustainable.

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