Seventh Schedule explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Seventh Schedule lists 19 relationships, under three headings, with three Explanations. Section 12(5) says that any person whose relationship with the parties, counsel or the subject-matter falls under any of these categories "shall be ineligible to be appointed as an arbitrator", notwithstanding any prior agreement to the contrary, and the parties may waive this only by an express agreement in writing made after the disputes have arisen. This follows the India Code consolidated text consulted.
The Schedule is headed "". Section 12(5) makes a person whose relationship falls in the Schedule ineligible, "notwithstanding any prior agreement to the contrary". The proviso lets the parties waive this "subsequent to disputes having arisen between them", by "an express agreement in writing". The Schedule has 19 entries under three headings, and the three Explanations define "close family member" and "affiliate" and deal with specialised pools of arbitrators. Entries 1 to 19 read word for word like entries 1 to 19 of the Fifth Schedule, which has 34.
Section 12(5) and its proviso
Section 12(5), as the India Code text prints it, reads: "Notwithstanding any prior agreement to the contrary, any person whose relationship, with the parties or counsel or the subject-matter of the dispute, falls under any of the categories specified in the Seventh Schedule shall be ineligible to be appointed as an arbitrator."
The proviso reads: "Provided that parties may, subsequent to disputes having arisen between them, waive the applicability of this sub-section by an express agreement in writing."
The footnote shows sub-section (5) with its proviso as inserted by Act 3 of 2016, s. 8 (w.e.f. 23-10-2015), and the Fourth to Seventh Schedules as inserted by Act 3 of 2016, s. 25 (w.e.f. 23-10-2015).
| Element | Text |
|---|---|
| Effect | The person "shall be ineligible to be appointed as an arbitrator" |
| Override | "Notwithstanding any prior agreement to the contrary" |
| Test | The person's relationship with the parties or counsel or the subject-matter of the dispute falls under a category in the Seventh Schedule |
| Waiver | By the parties, "subsequent to disputes having arisen between them", by "an express agreement in writing" |
Three points. The waiver comes after the dispute has arisen; an agreement made earlier does not displace the sub-section, because of the opening words. The waiver is by agreement of the parties and express. And it must be in writing. The text consulted does not describe a form for the waiver. If you are drafting an arbitration clause or considering a waiver, our arbitration support team can look at the wording with you.
See our article on section 12 for the disclosure and challenge provisions, and our post on appointment of arbitrator under section 11 for the appointment stage.
The Schedule's three headings and 19 entries
The Schedule's heading reads "". The bracket opened at the Fourth Schedule closes after Explanation 3 of this Schedule, as printed.
Arbitrator's relationship with the parties or counsel (entries 1 to 14)
| No. | Ground, in brief |
|---|---|
| 1 | Employee, consultant, advisor or any other past or present business relationship with a party |
| 2 | Currently represents or advises one of the parties or an affiliate |
| 3 | Currently represents the lawyer or law firm acting as counsel for a party |
| 4 | A lawyer in the same law firm which is representing a party |
| 5 | Manager, director or part of management, or similar controlling influence, in an affiliate if the affiliate is directly involved in the matters in dispute |
| 6 | The arbitrator's law firm had a previous but terminated involvement in the case, without the arbitrator being involved |
| 7 | The law firm currently has a significant commercial relationship with a party or an affiliate |
| 8 | Regularly advises the appointing party or an affiliate even though neither the arbitrator nor the firm derives a significant financial income |
| 9 | Close family relationship with a party, and in the case of companies with the persons in the management and controlling the company |
| 10 | A close family member has a significant financial interest in a party or an affiliate |
| 11 | A legal representative of an entity that is a party |
| 12 | Manager, director or part of management, or similar controlling influence, in one of the parties |
| 13 | Significant financial interest in one of the parties or the outcome of the case |
| 14 | Regularly advises the appointing party or an affiliate, and the arbitrator or firm derives a significant financial income therefrom |
Relationship of the arbitrator to the dispute (entries 15 and 16)
| No. | Ground, in brief |
|---|---|
| 15 | Has given legal advice or provided an expert opinion on the dispute to a party or an affiliate |
| 16 | Has previous involvement in the case |
Arbitrator's direct or indirect interest in the dispute (entries 17 to 19)
| No. | Ground, in brief |
|---|---|
| 17 | Holds shares, directly or indirectly, in a party or an affiliate that is privately held |
| 18 | A close family member has a significant financial interest in the outcome of the dispute |
| 19 | The arbitrator or a close family member has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party |
The three Explanations
- Explanation 1: "close family member" refers to a spouse, sibling, child, parent or life partner.
- Explanation 2: "affiliate" encompasses all companies in one group of companies including the parent company.
- Explanation 3: for the removal of doubts, it may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialised pool; if in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above.
Fifth and Seventh Schedules compared
| Point | Fifth Schedule | Seventh Schedule |
|---|---|---|
| Heading | "" | "" |
| Opening sentence | "The following grounds give rise to justifiable doubts as to the independence or impartiality of arbitrators" | None; the entries begin directly under the first heading |
| Headings | Seven | Three |
| Entries | 34 | 19 |
| Entries 1 to 19 | As above | The same words, under the same three headings |
| Entries 20 to 34 | Previous services, relationship with another arbitrator or counsel, relationship with a party and others, other circumstances | Not included |
| Explanations | Three, in the same words | Three, in the same words |
| Role in section 12 | Explanation 1 to section 12(1): the grounds "shall guide" | Section 12(5): ineligible, subject to a written waiver after the dispute arises |
| Waiver provision | None in the Schedule or in Explanation 1 | Proviso to section 12(5) |
The practical difference follows from the text. A Fifth Schedule ground gives rise to justifiable doubts, to be weighed with section 12(1) and (3). A Seventh Schedule category makes the person ineligible, subject to the proviso. See our article on the Fifth Schedule.
Printing note: the Fifth Schedule prints entry 11 as "11.The arbitrator", without a space; the Seventh Schedule prints "11. The arbitrator". Apart from that, the words of entries 1 to 19 are the same in both.
Where the Schedule meets the disclosure form
Under section 12(1) and the Sixth Schedule, an arbitrator discloses circumstances in writing; the Seventh Schedule categories are the ones that bear on eligibility. See our article on the Sixth Schedule. The text consulted does not say who decides whether a person's relationship falls within a category, other than through the provisions of Part I that deal with challenge and termination, which are outside this article.
An illustration
Two companies, Orion Textiles Ltd and Patil Dyes Pvt Ltd, agree in their contract that a named senior advocate, who is a consultant to Orion, will be sole arbitrator. When a dispute arises, entry 1 (consultant to a party) is engaged. Section 12(5) makes the person ineligible despite the prior agreement. After the dispute has arisen, both companies may by an express agreement in writing waive the applicability of the sub-section under the proviso. Without that waiver, section 12(5) applies as written. The names and facts are invented, and the example takes no view on any other step.
Need help with an arbitrator named in your contract?
A named arbitrator who falls in the Seventh Schedule is a risk to the whole clause. Our arbitration support team can review the clause, the appointee's relationships and the options for a written waiver after a dispute arises. For drafting guidance, see our post on arbitration clause drafting.
Key takeaways
- Section 12(5) makes a person whose relationship falls in the Seventh Schedule ineligible to be appointed as arbitrator, notwithstanding any prior agreement to the contrary.
- The parties may waive this only after disputes have arisen, by an express agreement in writing.
- The Schedule has 19 entries under three headings and three Explanations.
- Entries 1 to 19 read the same as entries 1 to 19 of the Fifth Schedule, which has 34.
- The Fifth Schedule gives rise to justifiable doubts; the Seventh makes a person ineligible.
Read next
- Fifth Schedule: grounds for justifiable doubts about arbitrator independence
- Sixth Schedule: form of disclosure by arbitrator
- Section 12: grounds for challenge and disclosure by arbitrator
- Arbitration clause draft for commercial contracts
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.