In Brief

A milk cooperative's distributorship agreement named the cooperative's Chairman as the sole arbitrator for disputes. When a dispute arose, the respondent first engaged the Chairman but later approached the High Court under Section 11 of the Arbitration Act seeking appointment of a different arbitrator. The cooperative opposed, arguing the agreement predated the 2015 amendment adding ineligibility criteria to Section 12. The Supreme Court held that the neutrality requirements of Section 12(5) and the Seventh Schedule apply to all agreements regardless of when made, as they reflect non-derogable principles of independence and impartiality. A Chairman who is a director with controlling influence falls within the ineligibility categories. Participation in proceedings before an ineligible arbitrator does not constitute waiver; only express written post-dispute agreement can waive ineligibility. The Court upheld the High Court's appointment of an eligible substitute arbitrator.

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