Order Rejecting A Section 16 Plea Cannot Be Immediately Challenged Under Section 34: Supreme Court

Introduction

In MCM Worldwide Private Limited v. Construction Industry Development Council [2026 INSC 425], the Supreme Court clarified whether an order passed by an arbitral tribunal rejecting a jurisdictional objection under Section 16 of the Arbitration and Conciliation Act, 1996 can be immediately challenged under Section 34 of the Act.

The Supreme Court held that where an arbitral tribunal rejects a plea that it lacks jurisdiction, the arbitral proceedings must continue and the challenge to such rejection can be raised only after the final award is passed. Such an order cannot be treated as an interim award capable of an immediate challenge under Section 34.

The judgment also clarifies the scope of Indian Farmers Fertilizer Cooperative Limited v. Bhadra Products [(2018) 2 SCC 534], which had held that a decision on limitation, when decided as a preliminary issue, may amount to an interim award. The Supreme Court clarified that the said principle does not apply where limitation