Supreme Court Holds That Mere Participation In Arbitration Does Not Waive Ineligibility Of Arbitrator

The Supreme Court in the matter of Bhadra International (India) Pvt. Ltd. & Ors. v. Airports Authority of India¹ through its judgment dated 05.01.2026 held that mere participation in arbitral proceedings does not lead to a waiver of the disqualification under law to be appointed as an arbitrator under Section 12(5) of the A&C Act. It held that waiver of such ineligibility can arise only through an express agreement in writing between the parties after the disputes have arisen, and cannot be inferred from conduct, acquiescence, or silence. Any appointment made in violation of Section 12(5) read with the Seventh Schedule of the A&C Act is ex facie invalid, and the arbitrator's mandate stands automatically terminated by operation of law.