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What is “kompetenz-kompetenz” and can an Israeli arbitral tribunal rule on its own jurisdiction?

Kompetenz-kompetenz is the principle that an arbitral tribunal has the authority to decide questions about its own jurisdiction — including whether the arbitration agreement is valid, whether the dispute falls within its scope, and whether the parties are bound by the clause. Israeli arbitration law recognizes this principle. Under Section 8 of the Arbitration Law 5728-1968 and Section 16 of the International Commercial Arbitration Law 5784-2024 (which follows the UNCITRAL Model Law), an Israeli tribunal can determine its own jurisdiction as a preliminary matter without waiting for a court ruling. A party who disagrees with a preliminary jurisdiction ruling may challenge it in the District Court within 30 days under the 2024 ICA Law.

The Arbitration Law 5728-1968 does not use the term "kompetenz-kompetenz" explicitly but incorporates its substance in Section 8, which allows a tribunal to rule on its own jurisdiction as a preliminary matter before proceeding to the merits. The International Commercial Arbitration Law 5784-2024, applicable to international commercial arbitrations seated in Israel, codifies the principle more formally in Section 16, closely following Article 16 of the UNCITRAL Model Law. A jurisdictional objection must be raised no later than the submission of the respondent's first statement of defense — failure to raise it promptly is treated as acceptance of jurisdiction under established Israeli arbitral practice. A tribunal that issues a preliminary ruling that it has jurisdiction can be challenged in the District Court within 30 days; challenges to a final award on jurisdictional grounds are also available but are drawn narrowly under Section 24 of the 1968 Law and Section 34 of the 2024 Law. The foundational framework of Israeli arbitration is set out in Introduction to Israeli Arbitration Law: What Every Party Needs to Know.

Where a respondent challenges jurisdiction and simultaneously applies to an Israeli court to restrain the arbitration, courts typically defer to the tribunal to decide the jurisdictional question first — consistent with the kompetenz-kompetenz principle and Israel's established pro-arbitration judicial policy. Courts will entertain the jurisdictional challenge independently only in clear cases: for example, where there is facially no arbitration agreement at all, or where the clause is so defective that the agreement to arbitrate cannot be established from its face. Raising a jurisdictional challenge does not automatically stay the arbitration: the tribunal may continue conducting proceedings while the court considers the challenge, and doing so in parallel with the court application is common practice. Parties should note that participation in the arbitration after raising a jurisdictional objection does not waive that objection, provided it was formally raised in the first statement of defense.

⚖ In Practice
  • Governing law: Section 8, Arbitration Law 5728-1968; Section 16, International Commercial Arbitration Law 5784-2024 (UNCITRAL Model Law Article 16)
  • Competent authority: District Court (Beit Mishpat HaMechozi) to challenge the tribunal's preliminary jurisdiction ruling
  • Deadline to challenge: 30 days from the tribunal's preliminary ruling on jurisdiction (2024 ICA Law); no fixed deadline under the 1968 Law but prompt action is expected
  • When to raise: jurisdictional objection must be raised no later than the first statement of defense — later objections are generally treated as waived
  • Effect of raising challenge: the tribunal may continue proceedings while the court considers the jurisdictional challenge — raising the objection does not automatically stay the arbitration

From the full guide: Introduction to Israeli Arbitration Law: What Every Party Needs to Know

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