Jurisdiction of Arbitral Tribunals
By Joy Puri
Table of Contents
Introduction
Taking about the common law countries, the concept of jurisdiction has evolved significantly, influenced by historical developments and the necessity to adapt to changing legal and social domains over the time.
Jurisdiction in common law systems is broadly and generally categorized and classified into subject matter jurisdiction, personal jurisdiction, and territorial jurisdiction.
Subject matter jurisdiction can be ordained as to the authority of a court to hear cases of a specific type or cases relating to specific subject matter.
Personal jurisdiction in the legal saga, pertains to the authority of a court over the parties involved in the litigation. The foundational principle here is that a court must hold and possess a legitimate connection to the parties or the events of the case, often established through factors like residency, presence, or business operations within the jurisdiction of the respective court of law.
The roots of jurisdiction in common law countries can be traced and tracked back to medieval England, where the King’s courts gradually gained dominance over other local and feudal courts of law.
The emphasis of common law countries on precedent also played a crucial role in defining jurisdiction of the courts of law. Over the time as it passed, judicial decisions established binding precedents that clarified and expanded jurisdictional boundaries were given the due importance.
Jurisdiction of Arbitral Tribunals
As per the section 16 of the Arbitration and Conciliation Act the arbitral tribunal may rule on its own jurisdiction, including ruling on any objections with respect to the existence or the validity of that purpose.
A plea that the arbitral tribunal does not have a jurisdiction shall not be raised later to the submission of statement of the defence, however the party shall not be precluded from raising such questions merely because he has appointed an arbitrator.
A plea that the arbitral tribunal is exceeding the scope of the authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings.
Furthermore, in view of the aforesaid, this part of the above entailed statute is a recognition of the principle of Kompetenz Kompetenz. The crux of the arbitration process is the party autonomy with minimal judicial intervention.
The provisions of this section reveal the anxiety of the legislature that a party to proceedings must not delay the arbitration process. If the plea of jurisdiction is not raised at the earlier stages of the proceedings then it cannot be raised under section 34 of the respective statute.
Scope and Applicability
The scope of the arbitration jurisdictions and the scope of section 16 lies in the very fact that the arbitration clause shall be treated as the agreement independent of all other terms of the contract
That the arbitral tribunal itself can decide the validity of the agreement including the question of the nullity and validity.
A decision declaring the contract as null and void will not make the arbitration contract stand as invalid.
A plea that the arbitration tribunal doesn’t hold the jurisdiction shall not be raised latter than the submission of the statement of defense.
Challenge to the jurisdiction of the arbitral tribunal if not made at an earlier and appropriate point of time, may be permitted to be raised later provided that the arbitral tribunal considers that the delay was justified
Doctrine of Separability
The doctrine of separability stipulates that the arbitration agreement called in is separate, separable or can be termed severable from the underlying contract in which it appears or to which it relates to.
Separability is doctrine of autonomy of arbitration agreement pursuant to which arbitrator may decide the disputes so arising.
The principle of this doctrine permits the parties to agree that the law of the country would govern to the substantive contract and the laws of the country would apply to the arbitration agreement.
The concept of the separability of the arbitration clause from the underlying contract is a necessity to ensure the intention of the respective parties in the matter and thereby to resolve their disputes by arbitration does not evaporate into thin air with every challenge to the legality, validity and the finality or the breach of the respective contract.
Conclusion
Arbitration in the new age is thereby becoming more useful in today’s world for many reasons. It offers a flexible, quick, and private way to solve disputes among the people in the society, which is important in our fast-moving global economy.
In the globalized world, arbitration helps support international trade by providing a neutral place where people from different countries can resolve their disputes between themselves without entangling themselves into the litigation disputes. The fact that arbitration decisions are recognized and enforceable in over 160 countries adds a sense of security to international deals between the giants.
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