Bhayana Builders Pvt. Ltd. v. Oriental Structural Engineers Pvt. Ltd 2025 INSC 1073- S.12(5) Arbitration Act

Arbitration and Conciliation Act 1996 - Section 12(5) ; Fifth Schedule- If a person cannot be appointed an arbitrator being ineligible by operation of law, he cannot nominate another as a sole arbitrator. [Context: In this case, SC held that since managing director of a company would be ineligible for being appointed as an arbitrator in view of Section 12 (5) read with paragraph 5 in the Fifth Schedule to the 1996 Act, he would be ineligible to nominate a sole arbitrator]

Case Info

Case Name and Neutral Citation

  • Case Name: Bhayana Builders Pvt. Ltd. v. Oriental Structural Engineers Pvt. Ltd. & Etc.
  • Neutral Citation: 2025 INSC 1073

Coram (Judges)

  • Coram: Justice Manoj Misra and Justice Ujjal Bhuyan

Judgment Date

  • Date of Judgment: August 18, 2025

Caselaws and Citations Referred

  1. TRF Ltd. vs. Energo Engg. Projects Ltd.
    • Citation: (2017) 8 SCC 377
  2. Central Organization for Railway Electrification (CORE) vs. ECI SPIC SMO MCML (JV) A Joint Venture Company
    • Citation: (2025) 4 SCC 641
  3. Perkins Eastman Architects DPC vs. HSCC (India) Ltd.
    • Citation: (2020) 20 SCC 760

Statutes/Laws Referred

  • Arbitration and Conciliation Act, 1996
    • Section 14(2): Termination of mandate of arbitrator
    • Section 12(5): Ineligibility of certain persons to be appointed as arbitrator
    • Fifth Schedule: Grounds for ineligibility