Section 16 of ACA : Section 16: Competence Of Arbitral Tribunal To Rule On Its Jurisdiction

Explanation using Example

Imagine a scenario where two companies, Company A and Company B, have a contract that includes an arbitration clause for resolving disputes. During their business dealings, a dispute arises and Company A initiates arbitration proceedings against Company B.

Company B claims that the entire contract, including the arbitration clause, is invalid because it was signed under duress. According to Section 16(1) of The Arbitration and Conciliation Act, 1996, the arbitral tribunal can independently rule on the validity of the arbitration agreement, separate from the rest of the contract. Thus, even if the contract is eventually found to be void, the arbitration clause may still be valid and enf...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.