Jurisdiction of Arbitral Tribunal under the Arbitration and Conciliation Act
Jurisdiction of Arbitral Tribunal
1. What is Jurisdiction?
Jurisdiction refers to the power or authority of the arbitral tribunal to hear and decide a dispute. Without jurisdiction, any award made by the tribunal is invalid.
2. Jurisdiction Under the Arbitration and Conciliation Act, 1996
The Act provides a detailed framework on the jurisdiction of the arbitral tribunal, particularly in:
Section 16 (Competence of arbitral tribunal to rule on its jurisdiction)
Section 8 (Reference of parties to arbitration where there is an arbitration agreement)
Section 9 (Interim measures by court)
Section 34 (Setting aside arbitral awards for lack of jurisdiction)
3. Basis of Jurisdiction
Arbitral tribunal’s jurisdiction arises primarily from the arbitration agreement between the parties.
The scope and extent of the arbitration agreement determine what disputes can be referred.
4. Section 16: Kompetenz-Kompetenz (Power to Rule on Jurisdiction)
The arbitral tribunal can decide its own jurisdiction, including objections related to:
Existence or validity of the arbitration agreement
Whether a claim is arbitrable
The tribunal may proceed with arbitration “unless the arbitration agreement is manifestly void, inoperative or incapable of being performed.”
5. Section 8: Referral to Arbitration
When a party to a suit or proceeding raises the existence of an arbitration agreement, the court must refer the parties to arbitration, unless the arbitration agreement is null and void, inoperative, or incapable of being performed.
This supports the tribunal’s jurisdiction by encouraging arbitration.
6. Section 9: Interim Measures
The court can grant interim measures before or during arbitration or even after the arbitral award but before it is enforced.
This preserves the tribunal’s ability to conduct proceedings fairly.
7. Grounds on which Jurisdiction Can Be Challenged
No valid arbitration agreement
Arbitration agreement is void or terminated
Dispute not covered by arbitration agreement
Subject matter is non-arbitrable (e.g., certain criminal matters or statutory disputes)
Fraud or illegality in the arbitration agreement
8. Section 34: Setting Aside Award for Lack of Jurisdiction
A party can apply to the court to set aside an arbitral award on the ground that the tribunal acted without jurisdiction or exceeded its jurisdiction.
The court will examine if the tribunal had the authority per the arbitration agreement.
9. Important Case Laws
Bharat Aluminium Co. v. Kaiser Aluminium Technical Service, Inc. (BALCO), (2012) 9 SCC 552
Supreme Court held that the arbitral tribunal has the primary right to decide on its jurisdiction (Kompetenz-Kompetenz principle).
Courts have limited power to interfere unless the arbitration agreement is manifestly void or inoperative.
National Insurance Co. Ltd. vs. Boghara Polyfab Pvt. Ltd., (2009) 1 SCC 267
Held that the arbitral tribunal’s jurisdiction is primarily derived from the arbitration agreement.
Courts should not interfere unless the arbitration agreement is clearly invalid.
S.B.P. & Co. vs. Patel Engineering Ltd. (2005) 8 SCC 618
The court emphasized party autonomy and the need to respect the tribunal’s jurisdiction.
10. Summary Table
| Aspect | Explanation |
|---|---|
| Jurisdiction Source | Arbitration agreement between parties |
| Tribunal’s Power | Decide its own jurisdiction (Section 16) |
| Court’s Role | Refer parties to arbitration (Section 8), grant interim relief (Section 9), set aside award if no jurisdiction (Section 34) |
| Challenge Grounds | Invalid arbitration agreement, non-arbitrable disputes, exceeding scope |
| Key Principle | Kompetenz-Kompetenz (tribunal decides jurisdiction first) |
Conclusion
The jurisdiction of the arbitral tribunal is central to arbitration’s legitimacy. The Arbitration and Conciliation Act empowers the tribunal to decide jurisdictional issues upfront, encourages courts to support arbitration, and limits judicial intervention to exceptional cases where the arbitration agreement is clearly invalid or non-arbitrable.
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