Discussion
Read the following statements and choose the correct option in the light of the Arbitration and Conciliation Act, 1996.
A dispute arises regarding jurisdiction of the arbitral tribunal.
Statement I : The arbitral tribunal may rule on its own jurisdiction.
Statement II : A plea that the tribunal lacks jurisdiction shall be raised not later than the submission of the statement of defence, unless the arbitral tribunal permits a later plea.
Answer: A
Both Statements I and II are true.
Section 16(1) of the Arbitration and Conciliation Act, 1996 embodies the principle of kompetenz-kompetenz: the arbitral tribunal may rule on its own jurisdiction, including objections about the existence or validity of the arbitration agreement. That is Statement I.
Section 16(2) requires a plea that the tribunal lacks jurisdiction to be raised not later than the submission of the statement of defence, and Section 16(4) lets the tribunal admit a later plea if it considers the delay justified. Statement II combines those two sub-sections accurately.
So no option that treats either statement as false is correct.
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