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Issues: Whether an arbitral tribunal's order under Section 16(2) of the Arbitration and Conciliation Act, 1996, rejecting a plea of lack of jurisdiction on limitation, is immediately challengeable under Section 34 of the Act and, if not, whether an appeal under Section 37 lies against the order passed on such a Section 34 application.
Analysis: The scheme of Section 16 treats a jurisdictional objection as one to be decided by the arbitral tribunal at the threshold. Where the tribunal rejects the plea, Section 16(5) requires the arbitration to continue and Section 16(6) postpones the challenge until the final award is made. Section 37 provides a direct appeal only where the tribunal accepts the plea and terminates the proceedings. The earlier decision on limitation as an interim award concerned a preliminary merits determination, not a ruling on the tribunal's own jurisdiction under Section 16. Treating a Section 16(2) rejection as an interim award would defeat the statutory scheme and render the appeal structure under Section 37 redundant.
Conclusion: The Section 34 application against the tribunal's order rejecting the jurisdictional plea was not maintainable, and the subsequent Section 37 appeal could not be entertained on that basis.
Ratio Decidendi: An order of the arbitral tribunal rejecting a jurisdictional objection under Section 16(2) of the Arbitration and Conciliation Act, 1996, is not an interim award and can be challenged only after the final award in accordance with Section 16(6), while a direct appeal under Section 37 lies only when the tribunal accepts the jurisdictional objection.
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