Section 16 recognises the principle of arbitral tribunal’s power to consider and determine disputes concerning its own jurisdiction. The arbitrator may rule on its jurisdiction including objections on existence or validity of the arbitration agreement. It is important that the plea of jurisdiction cannot be raised by a party after is it has filed its statement of defence. Though the party has appointed or participated in the appointment, the same will not act as a bar to such challenge.
The arbitrator can decide the jurisdictional objection or continue with the arbitration to make an award. If a party is aggrieved with such award can prefer application under section 34 challenging the award.