Participation in Arbitration Does Not Mean Automatic Acceptance of Arbitrator: Supreme Court

šŸ” What Happened

The Supreme Court of India ruled that merely taking part in arbitration proceedings does not mean a party has accepted the appointment of an arbitrator who may be legally ineligible.

🧾 Summary

In an important clarification under the Arbitration and Conciliation Act, 1996, the Supreme Court held that a party does not lose its right to challenge an arbitrator’s eligibility simply because it participated in arbitration proceedings. The Court explained that the law requires an express waiver in writing if a party agrees to overlook a conflict of interest. Silence, delay, or participation cannot be treated as consent.

This judgment protects individuals, startups, and businesses who may continue arbitration under pressure or lack of awareness, fearing legal consequences if they object. The Court emphasised that arbitration must remain fair and independent, and procedural participation should not override statutory safeguards.

🟢 Public Takeaway

If you are in arbitration, your legal rights stay protected unless you clearly waive them in writing. Participation alone does not mean consent.