Read the following statements and choose the correct option in the light of the Arbitration and Conciliation Act, 1996.
A dispute arises regarding jurisdiction of the arbitral tribunal.
Statement I: The arbitral tribunal may rule on its own jurisdiction.
Statement II: A plea that the tribunal lacks jurisdiction shall be raised not later than the submission of the statement of defence, unless the arbitral tribunal permits a later plea.
- AOnly Statement I is true
- BBoth Statements I and II are true
- COnly Statement II is true
- DNeither Statement I nor Statement II is true
Solution & Step-by-step Explanation
Under Section 16(1) of the Arbitration and Conciliation Act, 1996, the arbitral tribunal may rule on its own jurisdiction (principle of Kompetenz-Kompetenz), making Statement I true. Section 16(2) explicitly provides that a plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the statement of defence, making Statement II true as well.