Waiver of arbitral jurisdiction objection bars later challenge when a party participates without timely protest to tribunal constitution.

A party that participates in arbitral proceedings without timely objecting to the tribunal's constitution or jurisdiction waives that objection under the Arbitration and Conciliation Act, 1996. The Court noted that the sole arbitrator was appointed under Section 11(6), yet the appellant did not challenge the appointment at the relevant stage, filed a defence, led evidence, and raised a counterclaim without pleading any jurisdictional defect. Applying Sections 16(2) and 4, the Court held that such objections must be raised no later than the statement of defence and are lost if a party proceeds without protest. The jurisdictional challenge was therefore rejected and the award stood.

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Issues: Whether the appellant, having participated in the arbitral proceedings without objecting to the constitution or jurisdiction of the arbitral tribunal, could later challenge the tribunal's jurisdiction under the arbitration agreement and the Arbitration and Conciliation Act, 1996.

Analysis: The arbitration agreement contemplated a different mode of constitution, but the appointment of the sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 was not challenged at the relevant stage. The appellant filed a statement of defence, led evidence, and raised a counterclaim before the arbitrator without taking any jurisdictional plea. Section 16 of the Arbitration and Conciliation Act, 1996 recognizes the tribunal's competence to rule on its own jurisdiction, while Section 16(2) requires a jurisdictional objection to be raised no later than the statement of defence. Section 4 further provides that a party aware of non-compliance with an arbitration requirement, yet proceeding without timely objection, waives that objection.

Conclusion: The appellant had waived its objection to the constitution and jurisdiction of the arbitral tribunal and could not raise it for the first time in court. The challenge to the award therefore failed.

Ratio Decidendi: A party that participates in arbitral proceedings without timely objection to the tribunal's constitution or jurisdiction waives that objection and cannot later challenge the award on that ground.

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