Arbitration and Question of Jurisdiction in Contractual Matters: Supreme Court Explains the Legal Position

Arbitration and Question of Jurisdiction in Contractual Matters : Supreme Court Explains the Legal Position

In an interesting judgment passed by Hon'ble Supreme Court in the year 2025, issue of jurisdiction under Arbitration and Conciliation Act, 1996 has been discussed. Hon'ble J. Abhay S. Oka authored the judgment ; Bench composition was 2.  The case and dispute arose out of a contract and dispute centred around amount. 

In that Judgment, it was noted after referring S.16 (2) of Arbitration and Conciliation Act, 1996 that there is a clear bar on raising a plea of the lack of jurisdiction of the Arbitral Tribunal after submission of the statement of defence. Therefore, after certain period, the respondent could not have objected to the jurisdiction of the sole Arbitrator. Hence, the objection raised by way of an application dated 24th April 2004 was rightly rejected by the learned Arbitrator.

It was also noted that in so many words, on 5th December, 2003, the respondent submitted to the jurisdiction of the sole Arbitrator and agreed to file a statement of defence before the sole Arbitrator. After submitting to the jurisdiction of the sole Arbitrator, the respondent could not have belatedly objected to the jurisdiction of the sole Arbitrator on 24th April, 2004.

Case reference is Vidyawati Construction Company v. Union of India [2025] GCtR 1835 (SC).