Topic
A Section 16 jurisdictional objection decision constitutes an interim award challengeable under Section 34 of the Arbitration Act, 1996. The MP HC ruling lets parties challenge such jurisdictional orders, affecting arbitration under the Act.
The Supreme Court held that a writ court directing an arbitral tribunal to adjudicate claims 'strictly in accordance with the contract' impermissibly fetters the tribunal's Section 16 kompetenz-kompetenz over excepted matters. The ruling reinforces that tribunals retain exclusive initial jurisdiction to rule on their own jurisdiction, including disputes over contract termination validity, free from judicial pre-direction. This protects party autonomy in arbitration, particularly in government infrastructure contracts with standard general conditions.
The Bombay High Court held that an assignee of ownership rights is not bound by an arbitration clause in a development agreement unless the arbitration agreement is expressly assigned or accepted. The court also ruled that limitation objections fall within the arbitral tribunal's jurisdiction under Section 16, not the Section 11 court's purview at the appointment stage.
The High Court set aside the July 2026 order denying renewal of a foreign contribution registration, finding the authority failed to record a satisfaction of mind and breached natural-justice principles. It ordered a fresh hearing, underscoring that FCRA renewal decisions must be reasoned and afford the applicant a fair chance to be heard. NGOs and societies holding FCRA certificates are directly impacted.
Bombay HC holds that commercial disputes involving fraud remain arbitrable unless the fraud affects public interest or involves serious criminal offenses. The court set aside the arbitrator's jurisdictional objection, emphasizing that mere allegations of fraud or third-party involvement do not render a dispute non-arbitrable under the Vidya Drolia test.
Supreme Court rules that objections under Section 16 of the Arbitration and Conciliation Act regarding stamp duty deficiencies cannot be challenged via writ petition before the final award. Parties must await Section 34 proceedings, reinforcing the competence-competence principle and limiting judicial interference in interim arbitration disputes.
Gauhati HC clarifies that interest under Section 16 of the MSME Act must be calculated monthly at three times the RBI rate prevailing at the end of each month, not a fixed rate from the appointed day. The ruling eliminates the need for prior conciliation for repeated claims, strengthening MSMEs' recovery rights against delayed payments.
Bombay High Court holds that children and relatives may file appeals under Section 16 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, overturning prior restrictive interpretations.
Bombay High Court refers conflicting judgments on whether children or relatives can appeal under Section 16 of the Senior Citizens Act, 2007, to a larger bench.