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Chpater IV

Chapter IV of the Act (Sections 16–17) is the bedrock of Arbitral Autonomy. The central theme in 2025 and 2026 has been the “Hands-Off” approach by courts, ensuring that the Arbitrator is the primary judge of their own power.

1. Section 16: The “Kompetenz-Kompetenz” Principle

This section empowers the Arbitral Tribunal to rule on its own jurisdiction, including objections regarding the existence or validity of the arbitration agreement.

The “Referral First” Rule (2024–2026)

In Re: Interplay between Arbitration Agreements and Stamp Act (2024):
The Ruling: A 7-judge Constitution Bench held that the issue of non-stamping or insufficient stamping of a contract must be decided by the Arbitral Tribunal under Section 16, and not by the Court at the Section 11 stage.
Impact: This prevents the “stamping” excuse from being used as a stalling tactic in court.
Shivranjan Towers CHS v. Bhujbal Constructions (Bombay HC, Sept 2025):
The Rule: Confirmed that even if a party claims they are a non-signatory or the dispute is “non-arbitrable,” these are “mixed questions of fact and law” that should be raised via a Section 16 application before the Arbitrator first.
Bakhtawar Ahmad Rather v. AAI (Delhi HC, Aug 2025):
The Rule: Issues of “Accord and Satisfaction” (i.e., whether the dispute was already settled by a final payment) are now strictly for the Arbitrator to decide under Section 16, unless the claim is “dead” or “manifestly time-barred.”

Timeline and Appeals

Section 16(2): A jurisdictional plea must be raised no later than the Statement of Defence. If you miss this window, you are deemed to have waived your right to object (unless the delay is justified).
Section 16(5) & (6): If the Arbitrator rejects your jurisdictional challenge, they don’t stop. They continue the case and pass a final award. You can only challenge that rejection later under Section 34. You cannot file an immediate appeal against a rejection of a Section 16 plea.

2. Section 17: Interim Measures by the Tribunal

This section gives the Arbitrator the same powers as a Civil Court to grant “injunctions” or “stays” during the proceedings.

Amazon.com NV Investment Holdings v. Future Retail (2021 / Applied 2025):
The Rule: Interim orders passed by an Arbitrator (including Emergency Arbitrators) are enforceable in India just like an order of a Civil Court.
Enforcement Mechanism: If a party violates a Section 17 order, the other party can approach the Court under Section 27(5) for contempt or seek enforcement under Section 17(2) as if it were a court decree.

3. Comparison of Judicial Gatekeeping (2026 Update)

The current legal landscape creates a clear “division of labor” between the Court and the Arbitrator:

Issue	Who Decides?	Recent Case Law
Existence of Agreement	Court (Section 8/11)	NN Global (2024)
Validity (Stamping)	Arbitrator (Section 16)	Interplay Case (2024)
Arbitrability of Subject	Arbitrator (Section 16)	Shivranjan Towers (2025)
Limitation (Dead Claims)	Court (Section 11)	Bakhtawar Ahmad (2025)
Fraud/Forgery	Arbitrator (Section 16)	Popular Caterers (2025)

Important Procedural Note for 2026

If the Arbitrator accepts a Section 16 plea and drops the case, that order is immediately appealable under Section 37. However, if they reject it, you are “stuck” in the arbitration until the very end. This is a deliberate “pro-arbitration” design to prevent mid-stream appeals from killing the timeline.

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