Question

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.

• A. Both Statements I and II are true
• B. Only Statement I is true
• C. Neither Statement I nor Statement II is true
• D. Only Statement II is true

Hint:

Section 16 = "Kompetenz-Kompetenz." The Arbitrator acts as the judge of their own jurisdiction! If you have a dispute about the tribunal's authority, raise it early (by the defence statement) or risk losing the right to challenge.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
This refers to the doctrine of "Kompetenz-Kompetenz," found in Section 16 of the Arbitration and Conciliation Act, 1996.

Step 2: Detailed Explanation:
- Statement I is true: Section 16(1) empowers the arbitral tribunal to rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement.
- Statement II is true: Section 16(2) mandates that a plea regarding the lack of jurisdiction must be raised no later than the submission of the statement of defence, unless the tribunal, in its discretion, allows a later submission.

Step 3: Final Answer:
Both statements accurately reflect the law. Option (A) is correct.

Answer 2

Both statements in this question are direct paraphrases of specific sub-sections of Section 16 of the Arbitration and Conciliation Act, 1996, so checking each statement against the actual wording of that section, and then matching that to the four options, resolves the question.

1. Option (A): Statement I mirrors Section 16(1), which allows the arbitral tribunal to rule on its own jurisdiction, including objections about the existence or validity of the arbitration agreement, so Statement I is a true and accurate restatement of the law. Statement II mirrors Section 16(2), which requires a plea that the tribunal lacks jurisdiction to be raised no later than the submission of the statement of defence, subject to the tribunal's discretion to allow it later, so Statement II is also a true and accurate restatement. Since both statements track the statute correctly, this option is correct.
2. Option (B): This option would require Statement II to be false, but Section 16(2) does impose exactly the timing requirement described, so Statement II cannot be dismissed as untrue, making this option incorrect.
3. Option (C): This option would require both statements to be false, but Section 16(1) and 16(2) between them supply the exact content of both statements, so neither can be called false, making this option incorrect.
4. Option (D): This option would require Statement I to be false, but Section 16(1) plainly grants the tribunal competence to rule on its own jurisdiction, so Statement I cannot be dismissed as untrue, making this option incorrect.

Because both statements are accurate restatements of Section 16(1) and Section 16(2) respectively, the only option consistent with the statute is the one accepting both as true.

Therefore, the correct answer is Both Statements I and II are true.