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Question

The Arbitral Tribunal shall rule _______________.

A
at the direction of court
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B
on its own discretion
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C
at the instruction of parties
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D
as per provisions of General Clauses Act, 1897:
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Solution

The correct option is D on its own discretion
The Arbitral Tribunal is constituted on agreement between the parties but the tribunal has been given power under section 16 of the Act to rule on its own discretion including ruling on any objections with respect to the existence or validity of the arbitration agreement, and for that purpose an arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract and a decision by the arbitral tribunal that the contract is null and void shall not entail the invalidity of the arbitration clause.


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