In Brief
A consortium awarded ground handling contracts by Airports Authority of India (AAI) invoked arbitration when disputes arose. AAI unilaterally appointed a sole arbitrator under their contract clause. The arbitrator issued a nil award dismissing both parties' claims. The consortium challenged the award, arguing the arbitrator was ineligible under statutory rules that came into force in 2015 after the dispute began. The Court held that unilateral appointments violate equal-treatment principles and render arbitrators legally incapable of acting. Only express written agreements by both parties—after disputes arise—can waive such ineligibility. Participation in proceedings, filing claims, or seeking time extensions cannot substitute for explicit written waiver. Challenges to arbitrator ineligibility may be raised at any stage, including after the award. The arbitral award was set aside and fresh proceedings ordered.
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