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CS Professional · Arbitration, Mediation and Conciliation · Arbitral Proceedings, Pleadings and Evidence

Before the tribunal, Pragati Agro Ltd files its statement of defence. Only afterwards does it argue that the tribunal lacks jurisdiction because the arbitration agreement is invalid. The claimant objects as being late. What is the correct position?

A jurisdiction plea should be raised not later than the submission of the statement of defence. However, the tribunal may admit a later plea if it considers the delay justified, so the plea is not absolutely time-barred merely because the defence has already been filed.

  1. AThe plea is time-barred absolutely once the defence is filed
  2. BThe plea should have been raised not later than the submission of the defence, but the tribunal may admit a later plea if it considers the delay justifiedCorrect
  3. CThe plea can be raised only before the High Court
  4. DThe plea is valid only if Pragati did not appoint an arbitrator

Explanation

Section 16(2) requires a jurisdiction plea not later than submission of the defence, and appointing an arbitrator does not bar it. Section 16(4) lets the tribunal admit a later plea if it considers the delay justified. So it is not absolutely barred.

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