Section 16 Arbitration Act 1996 articulates the KOMPETENZ-KOMPETENZ principle:

1. Section 16 Arbitration and Conciliation Act 1996 codifies the KOMPETENZ-KOMPETENZ doctrine (also called Compétence-Compétence) — the principle that an arbitral tribunal has the power to RULE ON ITS OWN JURISDICTION. 2. (1) The arbitral tribunal may rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreement. 3. (a) Arbitration clause is treated as SEPARATE AGREEMENT from the main contract (SEPARABILITY / SEVERABILITY doctrine); 4. (b) A decision that contract is NULL AND VOID does NOT entail invalidity of the arbitration clause. 5. (2) A plea that the arbitral tribunal has NO JURISDICTION shall be raised not later than the submission of statement of defence. 6. (3) A plea that the arbitral tribunal is EXCEEDING the scope of its authority shall be raised AS SOON AS the matter alleged to be beyond the scope of its authority is raised in the proceedings. 7. (5) The tribunal shall decide on a plea referred to in (2) or (3) and may either: 8. (i) treat it as a preliminary question and rule; 9. (ii) decide along with the merits in the award. 10. (6) An order may be challenged by an application under Section 34 for setting aside. 11. Hence option B is correct. _Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 16; UNCITRAL Model Law Art 16_