In Brief
Bharat Broadband Network Limited issued a contract containing an arbitration clause. After disputes arose, its Managing Director appointed an arbitrator. However, the Managing Director himself fell within the ineligibility categories under Section 12(5) of the Arbitration and Conciliation Act, 1996 (as amended in 2015), making him unable to appoint an arbitrator. The Supreme Court held that such an appointment is void ab initio, the arbitrator is de jure unable to act, and his mandate automatically terminates. The Court rejected claims of waiver, finding that express written agreement to waive ineligibility requires explicit consent after disputes arise, not mere participation in proceedings. The appeal was allowed, the arbitrator's mandate was terminated, and the awards made thereafter were set aside.
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