Competence Of Arbitral Tribunal

We all have a blur image about who will decide on the competency of arbitrator on cases. Generally when cases come to arbitrator or arbitration institute the defense mainly raises the question on the competency of the arbitrator in deciding the matter. Section 16 of the Arbitration & Conciliation Act 1996 gives us answer for these most raised question. Arbitrator themselves have the right to decide on jurisdiction of the case.

Section 16 of Arbitration & Conciliation Act 1996 states that

• If parties even have arbitration clause in any agreement it would be treated as independent agreement and empowers tribunal to decide on it
• Even if any agreement is found to be null and void than also the arbitration clause in the agreement would be treated as valid agreement.
• Party can’t appeal on the jurisdiction of the tribunal after submitting the statement of defense at the same time we can’t Barr the party from raising such appeal as he had participated in the appointment of arbitrator or arbitration institute.
•   It’s only the arbitral tribunal which will decide whether they hold the jurisdiction to dispute or not in the case if any case comes to them for judgment.

 The main aim of arbitration & conciliation act 1996 was to provide hassle free litigation process, less ground for appealing. Section 16 is one of the section which empower it