S.12(5) Of A&C Act Provides For Agreement In Writing, Novation Can't Be Allowed Only Because Of Appointment Of Arbitrator At First Instance: Patna HC

The Patna High Court ruled that Section 125 of the Arbitration Act requires an express agreement in writing for novation of an agreement. In the present case, the appointment of an arbitrator did not automatically lead to a novation of the original agreement. The Court held that a written agreement between the parties was necessary to effect any such novation. This decision clarifies the legal requirement for novation in arbitration agreements and ensures that parties cannot change the terms of an agreement without proper written consent from all involved.