Belated arbitral jurisdiction objections cannot be raised in Section 34 after defence filing or rebranded as public policy challenges.

A jurisdictional objection to arbitral tribunal authority must be raised no later than the statement of defence under Section 16(2) of the Arbitration and Conciliation Act, and a party cannot participate in arbitration and then raise the point for the first time in Section 34 proceedings. The subject-matter non-arbitrability ground in Section 34(2)(b)(i) is distinct from an ordinary jurisdiction challenge and does not permit a belated plea of this kind. The same objection cannot be recast as a public policy challenge under Section 34(2)(b)(ii). The amendment introducing the late objection was therefore impermissible.

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Issues: Whether a party may, after filing its statement of defence in arbitration, raise for the first time in proceedings under Section 34 a jurisdictional objection that the arbitral tribunal lacked authority because the dispute fell within the jurisdiction of a different tribunal under a State enactment.

Analysis: Section 16(2) of the Arbitration and Conciliation Act, 1996 requires any plea that the arbitral tribunal lacks jurisdiction to be raised not later than the submission of the statement of defence. The provision bars a party from participating in the arbitration, allowing the tribunal to proceed, and then challenging jurisdiction only after an adverse award. The expression in Section 34(2)(b)(i) concerning subject-matter not capable of settlement by arbitration is distinct from a routine objection to tribunal jurisdiction and does not permit a belated jurisdictional plea of this kind. Nor can such a plea be recast as a challenge based on public policy under Section 34(2)(b)(ii), because a conflict between a Central arbitration regime and a State law on forum allocation does not convert an untimely jurisdictional objection into a public policy objection.

Conclusion: The belated jurisdictional objection was barred and should not have been allowed to be introduced by amendment in the Section 34 proceedings.

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