Substantive Objections On Validity Or Existence Of Arbitration Agreement Can Be Adjudicated By Tribunal U/S 16 Of Act: Bombay HC

The Bombay High Court ruled that substantive objections regarding the validity or existence of an arbitration agreement can be adjudicated by the tribunal under Section 16 of the Arbitration Act. The case involved a dispute over the arbitration agreement's applicability, with one party challenging its existence. The Court held that the tribunal has the authority to rule on such objections at the outset of the arbitration process. This judgment reinforces the principle that arbitration tribunals have the competence to decide on issues related to the formation and validity of arbitration agreements, ensuring a more efficient resolution of disputes.