Unilateral appointment of a serving employee as arbitrator without express written waiver is void *ab initio*.

The Petitioner awarded a contract worth Rs. 499.56 crores to the Respondent for the manufacture of wagons on 30.09.2020.

Disputes emerged regarding delivery periods, liquidated damages (LD), and the eventual short-closure of the contract by the Petitioner on 20.03.2023.

The Respondent triggered arbitration but specifically stated in notices dated 29.05.2023 and 11.08.2023 that it did not waive the provisions of Section 12(5) of the Arbitration and Conciliation Act, 1996.

Subsequently, the Petitioner proposed four serving employees as arbitrators; the Respondent shortlisted two, leading to the appointment of a sole arbitrator (a serving employee) on 30.01.2024.