Supreme Court Clarifies Jurisdictional Challenges in Arbitration: Section 34 Interpretation Resolves Precedent Conflicts

SC resolves apparent conflict between precedents regarding jurisdictional challenges in arbitration proceedings under the Act, 1996. The Court held that while a plea of lack of jurisdiction can generally be raised for the first time under Section 34, an exception exists for cases involving the MP Act, 1983. Where no jurisdictional objection was raised before the arbitral tribunal and an award has been passed, the award cannot be annulled solely on jurisdictional grounds. The Court clarified that Lion Engineering and L.G. Chaudhary (II) decisions are not contradictory but complementary, with L.G. Chaudhary (II) creating a specific limitation on challenging awards. The High Court's judgment was set aside, emphasizing the need to interpret arbitration laws harmoniously. .....

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