Arbitration Act 1940
Section 16
Competence of Arbitral tribunal to Rule on its Jurisdiction
(1) The arbitral tribunal may rule on its own
jurisdiction, including ruling on any objections with respect to the existence
or validity of the arbitration agreement, and for that purpose, -
(a) an
arbitration clause which forms part of a contract shall be treated as an
agreement independent of the other terms of the contract; and
(b) a
decision by the arbitral tribunal that the contract is null and void shall not
entail ipso jure the invalidity of the arbitration
clause.
(2) A plea that the arbitral tribunal does not
have jurisdiction shall be raised not later than the submission of the
statement of defense; however, a party shall not be precluded from raising such
a plea merely because that he has appointed, or participated in the appointment
of an arbitrator.
(3) A plea that the arbitral tribunal is
exceeding the scope of its authority shall be raised as soon as the matter
alleged to be beyond the scope of its authority is raised during the arbitral
proceedings.
(4) The arbitral tribunal may, in either of
the cases referred to in sub-section (2) or sub-section (3), admit a later plea
if it considers the delay justified.
(5) The arbitral tribunal shall decide on a
plea referred to in sub-section (2) or sub-section (3) and, where the arbitral
tribunal takes a decision rejecting the plea, continue with the arbitral
proceedings and make an arbitral award.
(6) A party aggrieved by such an arbitral
award may make an application for setting aside such an arbitral award in
accordance with section 34.