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Section 4: Waiver of right to object

Arbitration and Conciliation Act, 1996 • Official Statutory Text & Practice Guide

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Act 1996
Section 3 All 87 Sections Schedules (4th, 5th, 7th) Section 5
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Arbitration Sec 2(1)(a) Arbitration Agreement Sec 7

Legal Commentary & Landmark Judgments: Section 4

Section 4 of the Arbitration and Conciliation Act, 1996 codifies the doctrine of waiver, providing that a party who proceeds with arbitration without stating objections to non-compliance with derogable statutory provisions or agreement terms without undue delay is deemed to have waived their right to object.

  • Knowledge of Non-Compliance: Applies where a party knows that any non-mandatory provision of Part I or any requirement under the arbitration agreement has not been complied with.
  • Proceeding Without Objection: Yet proceeds with the arbitration without stating their objection without undue delay or within prescribed time.
  • Deemed Waiver of Right: The party shall be deemed to have waived their right to object.
  • Limitation: Non-Derogable Provisions Intact: Waiver cannot cure violations of mandatory public policy provisions (e.g., Section 12(5) ineligible arbitrators, patent lack of subject-matter arbitrability).
Key Landmark Precedents:
  • Narayan Prasad Lohia v. Nikunj Kumar Lohia, (2002) 3 SCC 572: The Supreme Court held that Section 10 (composition of tribunal with two arbitrators) is a derogable provision; proceeding before two arbitrators without objection constitutes a deemed waiver under Section 4.
  • Quippo Construction Equipment Ltd. v. Janardan Nirman (P) Ltd., (2020) 18 SCC 277: The Supreme Court ruled that a party who fails to participate or raise a timely jurisdictional objection before the arbitrator under Section 16 waives the objection under Section 4 and cannot raise it for the first time in Section 34.
  • Bharat Broadband Network Ltd. v. United Telecoms Ltd., (2019) 5 SCC 755: Settled that Section 4 waiver cannot cure the ineligibility of an arbitrator falling under the Seventh Schedule (Section 12(5)), which requires an express post-dispute written waiver.
Courtroom Practice & Strategic Litigation Guidance:

Never defer jurisdictional or procedural objections; file objections under Section 16 or Section 13 at the very first hearing of the arbitral tribunal to prevent opposing counsel from pleading statutory waiver under Section 4.

Section 3 All 87 Sections Schedules (4th, 5th, 7th) Section 5