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, even if an arbitrator is appointed. The case concerned whether the appointment of an arbitrator could result in the novation of the original agreement. The Court held that novation requires clear, written consent from all parties involved, and the mere appointment of an arbitrator does not alter the terms of the original agreement. This ruling clarifies the requirement for express written consent in arbitration cases and prevents unintended changes to contracts during arbitration proceedings.