Conduct of Arbitral Proceedings

Introduction
The conduct of arbitral proceedings is governed by Chapter V of the Arbitration
and Conciliation Act, 1996 (A & C Act) which provides a framework for how
arbitrations should be carried out in India. These provisions are designed to
ensure efficiency, fairness, and flexibility in the arbitration process while
maintaining procedural integrity. Unlike court proceedings, arbitration offers
parties significant autonomy to determine the procedural rules that will govern
their dispute resolution process. This document outlines the key provisions related
to the conduct of arbitral proceedings, highlighting the balance between party
autonomy and arbitral tribunal authority.

Key Provisions
Equal Treatment of Parties (Section 18)
The arbitral tribunal must treat all parties with equality, ensuring each party is
given a full opportunity to present their case. This provision establishes the
fundamental principle of procedural fairness in arbitration.
Determination of Rules of Procedure (Section 19)
 The arbitral tribunal is not bound by the Code of Civil Procedure, 1908, or the
Indian Evidence Act, 1872.
 Parties are free to agree on the procedure to be followed by the arbitral
tribunal.
 In the absence of party agreement, the arbitral tribunal may conduct
proceedings in a manner it considers appropriate.
 The arbitral tribunal has the power to determine the admissibility,
relevance, materiality, and weight of any evidence.
Place of Arbitration (Section 20)
 Parties are free to agree on the place (seat) of arbitration.
 If no agreement exists, the arbitral tribunal will determine the place of
arbitration considering the circumstances of the case and convenience of
the parties.
 Notwithstanding the designated place of arbitration, the tribunal may meet
at any place it considers appropriate for consultation, hearing witnesses or
parties, or inspection of documents or property.
Commencement of Arbitral Proceedings (Section 21)
Unless otherwise agreed by the parties, arbitral proceedings commence on the
date when the respondent receives a request for the dispute to be referred to
arbitration.
Language (Section 22)
 Parties may agree upon the language(s) to be used in the proceedings.
 Failing agreement, the tribunal shall determine the language(s).
 The language determination applies to written statements, hearings, and
any communication by the tribunal.
 The tribunal may order translation of documentary evidence into the
agreed or determined language.
Statements of Claim and Defence (Section 23)
 The claimant must state facts supporting their claim, points at issue, and
relief sought within the agreed time period.
 The respondent must state their defense within the stipulated timeframe.
 Parties may submit or reference relevant documents with their statements.
 Respondents may submit counterclaims or plead set-offs if they fall within
the scope of the arbitration agreement (Section 23(2A)).
 Parties may amend or supplement claims or defenses during proceedings
unless the tribunal considers it inappropriate due to delay.
 Statements of claim and defense must be completed within six months
from the date the arbitrator(s) received written notice of appointment
(Section 23(4)).
Hearings and Written Proceedings (Section 24)
 The tribunal decides whether to hold oral hearings or conduct proceedings
based on documents and other materials, unless parties have agreed
otherwise.
 The tribunal must hold oral hearings if requested by a party, unless parties
have agreed to no oral hearings.
 Hearings should be conducted on a day-to-day basis as far as possible,
and adjournments should only be granted for sufficient cause with possible
imposition of costs.
 Parties must receive sufficient advance notice of hearings and meetings
for inspection of documents or property.
 All statements, documents, or applications made to the tribunal by one
party must be communicated to the other party.
 Any expert report or evidentiary document relied upon by the tribunal must
be communicated to the parties.
Default of a Party (Section 25)
Without sufficient cause:
 If the claimant fails to communicate the statement of claim, the tribunal
shall terminate proceedings.
  If the respondent fails to communicate the statement of defense, the
tribunal shall continue proceedings without treating this failure as
admission of allegations, and may consider the respondent's right to file
defense as forfeited.
 If a party fails to appear at a hearing or produce documentary evidence,
the tribunal may continue proceedings and make an award based on
available evidence.
Expert Appointed by Arbitral Tribunal (Section 26)
 Unless otherwise agreed, the tribunal may appoint experts to report on
specific issues.
 The tribunal may require parties to provide relevant information or access
to documents or property for the expert's inspection.
 If requested by a party or deemed necessary by the tribunal, the expert
shall participate in an oral hearing for questioning and to allow parties to
present their own expert witnesses.
 Upon request, the expert must make available to parties all materials
provided to prepare the report.
Court Assistance in Taking Evidence (Section 27)
 The tribunal or a party (with tribunal approval) may apply to the Court for
assistance in taking evidence.
 The application must specify details of parties, arbitrators, the nature of the
claim, and evidence sought.
 The Court may execute the request within its competence and according
to its rules on taking evidence.
 The Court may issue the same processes to witnesses as in suits tried
before it.
 Persons failing to comply with Court processes may face penalties as they
would in Court proceedings.

Conclusion
The provisions governing the conduct of arbitral proceedings reflect the
fundamental principles of arbitration: party autonomy, procedural flexibility, and
efficiency. While empowering parties to determine the procedural framework, the
law also provides default rules and grants arbitrators significant discretion to
ensure fair and efficient resolution of disputes. The arbitral tribunal is liberated
from strict procedural codes that govern court proceedings, allowing for a more
streamlined process. However, safeguards are in place to ensure procedural
fairness and equal treatment of parties. These provisions collectively create a
balanced framework that promotes arbitration as an effective alternative dispute
resolution mechanism while maintaining necessary procedural integrity and
fairness.