Mars Limited, a manufacturing company, entered into a technology supply contract with Neptune private Limited. The agreement contained an arbitration clause providing that dispute would be resolved through institutional

Under Section 16 of the Arbitration and Conciliation Act, 1996, the arbitral tribunal is empowered to rule on its own jurisdiction, including objections regarding the existence or validity of the arbitration agreement. This principle is known as "Competence-Competence" principle. Recent developments in arbitration practice emphasize minimal judicial interference and greater autonomy of arbitral tribunals in determining jurisdictional questions at the initial stage of proceedings. In the recent case of Cox & Kings Ltd. V. SAP India Pvt. Ltd. & Anr decided by Supreme Court on 09th September, 2025, the Honourable Supreme Court has ruled on the power of Arbitral Tribunal to rule on its jurisdiction. According to the decision, Section 16 of the Arbitration Act enshrines the principle of competence-competence in Indian arbitration law. The provision empowers the Arbitral Tribunal to rule on its own jurisdiction, including any ruling on any objections with respect to the existence or validity of arbitration agreement. In the present case, the arbitral tribunal decided to examine whether it had jurisdiction before proceeding with the merits of the dispute. Such action is consistent with Section 16, which expressly authorizes the tribunal to determine objections relating to jurisdiction or validity of the arbitration agreement. Therefore, the arbitral tribunal has the statutory authority to rule on its own jurisdiction including the validity of the Agreement, and the objection raised by Mars Limited cannot invalidate the tribunal's power to decide the jurisdictional issue.