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IN THE HIGH COURT OF DELHI AT NEW DELHI
AVNEESH JHINGAN
Railways Board, Ministry Of Railways – Appellant
Versus
Titagarh Rail Systems Limited – Respondent
| Table of Content |
|---|
| 1. petition filed under section 34 of arbitration act. (Para 1) |
| 2. facts of contract and arbitration process. (Para 2) |
| 3. arguments of both parties on waiver of section 12(5). (Para 3 , 4) |
| 4. issue of compliance with section 12(5) raised. (Para 5 , 6) |
| 5. supreme court's observations on arbitrator eligibility. (Para 7 , 8) |
| 6. detailed analysis of section 12(5) and waiver requirements. (Para 9 , 10 , 11 , 12 , 13 , 14) |
| 7. court's ruling on responsiveness to arbitrator's appointment. (Para 15 , 16 , 17 , 18) |
| 8. conclusion: award set aside due to violation of section 12(5). (Para 19) |
JUDGMENT :
AVNEESH JHINGAN, J.
1. This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') is filed aggrieved of the arbitral award dated 05.08.2024 (hereinafter 'the award').
BRIEF FACTS
2. The brief facts are that the petitioner issued a notice inviting tender for 'Manufacture and Supply of BCNAHSM1 Wagons'. The respondent was the successful bidder. On 30.09.2020 a contract valuing Rs.499,56,48,000/- for 1652 wagons was awarded.
2.1 There was a dispute between the parties with regard to re- fixation of the delivery period, the imposition of liquidated damage
A unilateral appointment of an arbitrator from an ineligible party is void ab initio without an express written waiver of Section 12(5) of the Arbitration and Conciliation Act, which cannot be implie....
An arbitrator's appointment violating Section 12(5) of the Arbitration Act without an express written waiver is invalid, rendering any adjudicated award void.
The main legal point established in the judgment is the requirement of an express agreement in writing to waive the applicability of Section 12(5) of the Arbitration and Conciliation Act, 1996.
The necessity for an express written waiver to validate an arbitrator's appointment under Section 12(5) of the Arbitration and Conciliation Act, 1996.
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