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TMI Blog2003 (3) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... een challenged. 2. We have heard the learned counsel for the parties. 3. The learned counsel for the petitioners contended that the above provisions are ultra vires, and unconstitutional being violative of Article 14 of the Constitution, as they are arbitrary and discriminatory. 4. Section 16 is under Chapter IV. The said Chapter deals with Jurisdiction of Arbitral Tribunals. The section provides for competence of Arbitral Tribunal to decide its jurisdiction. Sub-section (1) enacts that the Arbitral Tribunal may rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of arbitration agreement. Sub-sections (2), (3) and (4) of section 16 provide for raising of plea as to jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 of the Act is concerned, the point is no longer res integra and is concluded by a decision of the Supreme Court in Babar Ali v. Union of India [2000] 2 SCC 178. Against a decision upholding the validity of the above provision by the High Court of Delhi, Special Leave Petition was filed by the aggrieved petitioner. The Supreme Court, while dismissing Special Leave Petition, observed that the High Court had rightly held that judicial review was available to the aggrieved party by challenging the award in accordance with the procedure laid down in the Act. Merely because the question of jurisdiction can be raised after the award is made, and not at any penultimate stage, is no ground for holding that such an order is not subject to ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a speaking order recording reasons in support of such order, it cannot be contended that those reasons would not bind the High Court, and Article 141 would not get attracted. The Court also quoted with approval similar observations in Supreme Court Employees Welfare Association v. Union of India [1989] 4 SCC 187. It is, therefore, clear that the reasons weighed with the Supreme Court while disposing Special Leave Petition are relevant and having a binding effect. 11. No doubt, the counsel contended that in Babar Ali, no reasons have been recorded by the Supreme Court, and hence, Article 141 of the Constitution would not be attracted. We are afraid, we cannot uphold the contention. The Supreme Court, in terms, observed that an orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts giving its jurisdiction, in the latter case, it has only to see whether a certain state of facts exists. 13. Keeping in view of the phraseology used in section 16 of the Act, it cannot be gainsaid that the Arbitral Tribunal has been granted jurisdiction to determine whether the preliminary state of facts on which its exercise of jurisdiction depends exists, and it has power to proceed in accordance with law. If no appeal is provided against such an order, it cannot be said that the provision is ultra vires or unconstitutional. 14. We are also not impressed by an argument that in cases where it has been held by the Arbitral Tribunal that it has no jurisdiction, an appeal is provided and thus, there is discrimination. The t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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