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Supreme Court of India· 08 September 2026

Is a claim falling within the 'excepted matters' clause of a works contract decided by the Arbitral Tribunal under Section 16 of the Arbitration and Conciliation Act, 1996, not by the Court?

M/s. GVV Constructions v. The Union of India & Ors
2026 INSC 976 · SPECIAL LEAVE PETITION (CIVIL) NO. 7338 OF 2026
Coram: Justice Pamidighantam Sri Narasimha · Justice Alok Aradhe
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Answer

A claim falling within the 'excepted matters' clause of a works contract is decided by the Arbitral Tribunal under Section 16, not by the Court.

Yes. Whether a particular claim is covered by, or falls outside, an 'excepted matters' clause of a works contract is a question squarely within the competence of the Arbitral Tribunal under Section 16 of the Arbitration and Conciliation Act, 1996, and not for a court exercising jurisdiction under Section 11 or Article 226. (¶18)

Headnote

Arbitration and Conciliation Act, 1996 — s.16, s.11(6A) — Constitution of India, Art.226 — Kompetenz-kompetenz — Excepted matters — Arbitration and Conciliation Act, 1996 — s.16 — Excepted matters — Tribunal's competence — Held: A claim falling within the 'excepted matters' clause of a works contract is decided by the Arbitral Tribunal under Section 16, not by a court exercising Section 11 or Article 226 jurisdiction. (¶18) s.11(6A) — Eye of the needle standard — When in doubt, refer — Held further: A court examining a Section 11 application must refer the parties to arbitration unless it is manifestly and ex facie certain the arbitration agreement is non-existent, invalid, or the dispute non-arbitrable. (¶16) Writ appellate jurisdiction — No pre-determination of Tribunal's jurisdiction — Held further: A writ appellate court cannot prescribe in advance the manner of, or place constraints upon, the Arbitral Tribunal's adjudication of its own jurisdiction under Section 16. Appeal disposed of accordingly. (¶19, 20, 22)

Headnote

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In the Court's own words
Paragraph 18What emerges from the foregoing survey is that, under the Act, the question whether a particular claim is covered by, or falls outside, an “excepted matters” clause of a works contract is a matter squarely within the competence of the Arbitral Tribunal under Section 16, and not a question for a court exercising even the wider, appointment-stage jurisdiction under Section 11, much less for a court exercising the discretionary jurisdiction of judicial review under Article 226 of the Constitution, whose very engagement with the merits of the dispute, in the present case, was declined on the ground that it involved complicated questions of fact.
Acts & Sections
s.16 Arbitration and Conciliation Act, 1996s.11(6A) Arbitration and Conciliation Act, 1996Art.226 Constitution of India

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Also decided in this judgment
Must a court examining an application under Section 11 of the Arbitration and Conciliation Act, 1996 refer the parties to arbitration unless it is manifestly and ex facie certain the dispute is non-arbitrable?Can a writ appellate court prescribe in advance the manner of, or place constraints upon, the Arbitral Tribunal's adjudication under Section 16 of the Arbitration and Conciliation Act, 1996?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections