Mere Participation in Arbitration Does Not Bar Jurisdictional Challenge: Supreme Court

The Supreme Court held that merely taking part in arbitration proceedings does not stop a party from later challenging the arbitrator’s jurisdiction.

The Court found that in this case, there was no valid arbitration agreement between the parties, making the entire arbitration process invalid. It observed that jurisdictional defects go to the root and cannot be cured by participation or consent.

Since the arbitrator lacked authority from the beginning, the award passed was treated as non-existent in law.

Upholding the Bombay High Court’s decision, the Supreme Court dismissed the appeal and reaffirmed that jurisdiction cannot be created by conduct alone.

[M/s Bharat Udyog Ltd. (formerly known as M/s Jai Hind Contractors Pvt. Ltd.) v. Ambernath Municipal Council & Anr.]