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Madras High Court· 25 September 2026

Can an Arbitral Tribunal under the Arbitration and Conciliation Act, 1996 sit in judgment over its own foundation where the arbitration agreement is itself seriously and credibly impeached?

Chandramouli V v. American International School Chennai
ARB O.P.44/2026 · 2026:MHC:3933 · OP No.44 of 2026
Coram: Justice Sushrut Arvind Dharmadhikari
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Answer

An Arbitral Tribunal cannot sit in judgment over its own foundation where the arbitration agreement is itself seriously and credibly impeached.

No. An Arbitral Tribunal cannot sit in judgment over its own foundation where the arbitration agreement is itself seriously and credibly impeached. The Court rejected the submission that the genuineness of the letter introducing the arbitration clause was a matter for the Arbitral Tribunal, because a Tribunal draws its authority from the arbitration agreement. Without the respondent's consent to arbitration, there was no arbitration agreement on which the Court's jurisdiction under Section 11(6) could be made to stand.

Headnote

Arbitration and Conciliation Act, 1996 — S.11(6) — Appointment of arbitrator — Existence of arbitration agreement — Arbitration clause introduced by a separate letter — Allegation of fraud and forgery — Non-arbitrability — Arbitration and Conciliation Act, 1996 — S.11(6) — Arbitration clause embedded in a disputed document — Consent as the foundation of arbitration — Held: Arbitration is the child of consent. Where the arbitration clause does not exist independently but is embedded in a document whose genuineness is seriously disputed as a product of fraud or forgery, the dispute assumes a jurisdictional dimension and is non-arbitrable at the threshold, and no arbitrator can be appointed under s.11(6). Rajia Begum v. Barnali Mukherjee, (2026) 7 SCC 631, followed. (¶8, 9, 10, 11) Arbitration and Conciliation Act, 1996 — Competence of the Arbitral Tribunal — Challenge to the foundation of the arbitration agreement — Held further: A Tribunal draws its authority from the arbitration agreement and cannot be asked to sit in judgment over its own foundation where that foundation is itself seriously and credibly impeached. Petition dismissed, with liberty to pursue civil remedies. (¶12, 13)

Headnote

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In the Court's own words
Paragraph 11In the case at hand, the arbitration clause, in the language of Rajia Begum (supra), "does not exist independently but is embedded in the document whose existence is seriously disputed." The petitioner has not shown that the respondent ever lent its consent to arbitration. Without consent, howsoever elegantly the clause may be drafted, there is no arbitration agreement upon which this Court's jurisdiction under Section 11(6) of the Act can be made to stand.
Paragraph 12The submission of learned counsel for the petitioner that the genuineness of the letter dated 13.5.2023 is a matter for the Arbitral Tribunal to decide does not pass muster, as a Tribunal draws its authority from the arbitration agreement, and cannot be asked to sit in judgment over its own foundation, where that foundation is itself seriously and credibly impeached.
Acts & Sections
Section 11(6) Arbitration and Conciliation Act, 1996

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Also decided in this judgment
Is a dispute non-arbitrable at the Section 11(6) stage of the Arbitration and Conciliation Act, 1996 where the arbitration clause is embedded in a document whose genuineness is seriously disputed?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections