Delhi High Court: Arbitral Tribunal to Decide Non-Arbitrability of Disputes, Not Courts at Section 11 Stage

### Delhi High Court: Arbitral Tribunal to Decide Non-Arbitrability of Disputes, Not Courts at Section 11 Stage

The Delhi High Court recently delivered a crucial judgment, clarifying that the Arbitral Tribunal has the authority to determine the non-arbitrability of disputes, not the courts, during the Section 11 stage of the Arbitration and Conciliation Act, 1996. This decision limits the role of courts at the preliminary stage to verifying the existence of a valid arbitration agreement and ensuring that the basic requirements for arbitration are met.

The court emphasized that any claims regarding the non-arbitrability of a dispute, including whether the claims have been repudiated, should be adjudicated by the Arbitral Tribunal. This aligns with the principle of kompetenz-kompetenz, which grants the tribunal the authority to rule on its own jurisdiction, including matters related to the arbitrability of the claims.

This judgment is significant as it reinforces the intent to minimize judicial interference in arbitration matters, ensuring that arbitration remains an effective, independent, and efficient dispute resolution mechanism. By restricting the court’s involvement at the Section 11 stage, the decision upholds the tribunal’s autonomy in resolving both procedural and substantive issues, thereby fostering a smoother arbitration process.

This ruling marks a positive step toward promoting arbitration as a preferred mode of resolving disputes.