Challenge on the grounds of Ineligibility of Arbitrator
1 An Arbitration award may be set aside for violation of Sections 12(1), 12(2) and 12(5) of the Arbitration and Conciliation Act, 1996.
2 Participation by a party in the Arbitral proceedings doesn’t constitute waiver of its right to challenge appointment of Arbitrator, on the grounds of being ineligible.
3 The plea that the Arbitrator was ineligible to act as an Arbitrator, is a plea of Jurisdiction, which can be raised in S.34 Petition, although there was no such challenge in Arbitration proceedings.
4 The ground that Arbitrator was unilaterally appointed by the Respondents in violation of S.12(5), may be taken for the first time u/s 34.
5 A Party not having challenged appointment of Arbitrator u/s 13 of the Act, may still challenge the Appointment u/s 34.
6 An Award passed by (unilaterally Appointed) Arbitrator, in violation of S.12(5), is void and non est; and cannot be enforced u/s 36 of the Act.
7 An Award passed by (unilaterally Appointed) Arbitrator, in violation of S.12(5), is void and non est; have to be set aside, although Petitioner may have participated in the proceedings.
8 Award passed by an Arbitrator, not having requisite qualifications as per the Agreement, deserves to be set aside.