Applicability Of Arbitration Clause Is To Be Determined By Arbitrator, Cannot Be Decided In S.11 Plea: Delhi High Court

The Delhi High Court has reiterated the established legal principle that the arbitrator, and not the court, is the appropriate authority to determine the applicability of an arbitration clause to a dispute. This decision was made in a petition filed under Section 11 of the Arbitration and Conciliation Act for the appointment of an arbitrator. The respondent had argued that the dispute did not fall within the scope of the arbitration agreement. However, the High Court, citing the doctrine of 'Kompetenz-Kompetenz', held that it is for the arbitral tribunal to rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. The court's role is limited to appointing an arbitrator once the existence of an agreement is established. This ruling prevents courts from conducting a mini-trial on the merits of the dispute at the pre-arbitration stage.