Objections On Capacity Of Party To Initiate Arbitration Must Be Addressed Before Tribunal, Not While Appointing Arbitrator: Delhi HC

The Delhi High Court ruled that objections regarding the capacity of a party to initiate arbitration should be addressed in proceedings before the arbitral tribunal, not at the stage of the appointment of an arbitrator. The court emphasized that such objections pertain to the merits of the dispute and should be resolved by the arbitral tribunal, which has the jurisdiction to determine its own competence. The ruling aims to streamline the arbitration process and prevent premature judicial intervention. By directing that capacity objections be addressed by the arbitral tribunal, the court seeks to uphold the principle of kompetenz-kompetenz, which allows the tribunal to rule on its own jurisdiction. This decision is expected to provide clarity and consistency in arbitration proceedings, ensuring that disputes are resolved efficiently and effectively. The ruling highlights the judiciary’s role in supporting arbitration as a preferred method of dispute resolution and minimizing judicial interference.