Waiver And Acquiescence In Challenges To Arbitral Tribunal Constitution

INTRODUCTION

1. The decision of the Hon'ble Supreme Court in Municipal Corporation of Greater Mumbai v. M/s R.V. Anderson Associates Ltd. is a significant development in Indian arbitration jurisprudence. The Hon'ble Supreme Court has addressed a pertinent issue, i.e., whether a party that has silently participated in the formation of the Arbitral Tribunal can subsequently challenge such formation on the grounds of lack of jurisdiction due to improper constitution of the arbitral Tribunal. The Hon'ble Court provided much-needed clarification on the interplay between Section 16 and Section 4 of the Arbitration and Conciliation Act, 1996 ("the Act") by affirming that parties that remain silent during the constitution process of arbitral tribunals cannot later challenge its constitution.