In Absence Of An Express Agreement Waiving Applicability Of S.12(5) Of Arbitration & Conciliation Act, Arbitration Clause Becomes Otiose: Patna HC

The Patna High Court ruled that in the absence of an express agreement waiving the applicability of Section 12(5) of the Arbitration and Conciliation Act, the arbitration clause becomes otiose. The case involved a dispute where the arbitration clause appointed the Engineer-in-Chief as the arbitrator, which was challenged under Section 12(5) of the Act. The court held that without an express waiver, the arbitration clause could not be enforced. This ruling highlights the importance of explicit agreements in arbitration clauses, ensuring that parties are aware of and agree to any deviations from statutory provisions. The decision emphasizes the need for clear and express agreements to waive statutory disqualifications, thereby protecting the integrity of the arbitration process and ensuring that arbitrators are impartial and independent.