As per case facts, a contract for wagon supply led to disputes over delivery, liquidated damages, and contract cancellation. The Petitioner appointed a serving employee as sole arbitrator after the ... Respondent's initial non-waiver of Section 12(5) of the Act, followed by shortlisting names and consenting to fast-track arbitration. An award was passed against the Petitioner, leading to this challenge. The question arose whether the arbitrator's appointment complied with the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996, specifically regarding express written waiver of ineligibility. Finally, the Court ruled that a serving employee is ineligible under Section 12(5) and Schedule VII without an express written agreement for waiver. Unilateral appointment by a party is void ab initio, and participation in arbitration proceedings does not imply waiver. The objection to the arbitrator's ineligibility can be raised for the first time in a Section 34 Petition. The award was set aside.