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Arbitration and Conciliation Act, 1996 · Chapter IV

Section 16: Competence of arbitral tribunal to rule on its jurisdiction

In plain words

The arbitral tribunal can decide its own jurisdiction, including objections that the arbitration agreement does not exist or is invalid.

  • An arbitration clause is treated as separate from the rest of the contract, so the clause survives even if the contract is found void.
  • An objection to jurisdiction must be raised by the time of the statement of defence. An objection that the tribunal is exceeding its authority must be raised as soon as the issue comes up.
  • The tribunal can allow a late objection if the delay is justified.
  • If the tribunal rejects the objection, it continues and the party can challenge the award under section 34.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Read the in-depth explanation, with key Supreme Court rulings ↓

Official text

(1) The arbitral tribunal may rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreement, and for that purpose,—

(a) an arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract; and

(b) a decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause.

(2) A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the statement of defence; however, a party shall not be precluded from raising such a plea merely because that he has appointed, or participated in the appointment of, an arbitrator.

(3) A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings.

(4) The arbitral tribunal may, in either of the cases referred to in sub-section (2) or sub-section (3), admit a later plea if it considers the delay justified.

(5) The arbitral tribunal shall decide on a plea referred to in sub-section (2) or sub-section (3) and, where the arbitral tribunal takes a decision rejecting the plea, continue with the arbitral proceedings and make an arbitral award.

(6) A party aggrieved by such an arbitral award may make an application for setting aside such an arbitral award in accordance with section 34.

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 16 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Understanding this section

Section 16 lets the arbitral tribunal rule on its own jurisdiction, including objections about the existence or validity of the arbitration agreement. It also states the separability rule: the arbitration clause is independent of the rest of the contract.

Timing and route of objections

A plea that the tribunal lacks jurisdiction must be raised no later than the statement of defence. A plea that the tribunal is exceeding its authority must be raised as soon as the matter arises. The tribunal may admit a later plea if the delay is justified.

If the tribunal rejects the objection, it continues and makes an award; the objection is then raised in a challenge under section 34. If the tribunal accepts the objection, the order can be appealed under section 37.

Relation to sections 8 and 11

Because the tribunal can decide its own jurisdiction, courts at the reference and appointment stage look only at the prima facie existence of the agreement and leave detailed jurisdictional questions to the tribunal.

Key Supreme Court rulings

Common mistakes

  • Raising a jurisdiction objection for the first time after the statement of defence without explaining the delay.
  • Trying to appeal immediately when the tribunal rejects a jurisdiction plea. The challenge waits for the award.

Read with: Section 34 Arbitration and Conciliation Act, 1996, Section 37 Arbitration and Conciliation Act, 1996

Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.

Supreme Court judgments citing the section 16