Procedural requirements in Arbitration
Section 19 of the Arbitration and Conciliation Act,1996 recognizes the right of the parties to agree on the procedural rules applicable to the arbitral proceedings. Parties are free to adopt procedural rules or comply with have their arbitration administered by an establishment with its own rules in exercise of this choice. If the parties fail to decide on a procedure, the arbitral tribunal can conduct the proceedings in the manner it considers appropriate. However, the tribunal in case of domestic proceedings is not mandated to follow procedural rules. However, the procedure devised by the parties or the tribunal must meet the essential tenets of an adjudicatory process; that is, the parties must be treated with equality, and every party must be given a full opportunity of presenting their case.
Though the Arbitration Act does not prescribe detailed default rules regulating procedures. However, it provides some useful guidance to the parties and, therefore, the arbitrators on how arbitrations should be conducted. Parties can deviate from these default rules by specific agreement, subject to the limitation that any procedure devised by the parties or the tribunal must meet the essential tenets of an adjudicatory process.
The procedure of the proceeding is as follows-
- The claimant must usually state the facts were supporting their claim, the points in dispute. Therefore, the relief or remedy sought and the respondent must state their defense in respect of those particulars and any counterclaim or set-off they seek to say while filing their statement of claim and defense, respectively.
- Parties can submit with their statements all documents they concede to be relevant or add regard to the documents or other evidence they're going to submit.
- Either party can amend or supplement their claim or defense during the arbitral proceedings unless the arbitral tribunal considers it inappropriate to permit the amendment or supplement having reference to the delay in making it.
- The arbitral tribunal must hold the oral hearings for the presentation of evidence or oral argument daily and not grant any adjournments unless sufficient cause is formed out. The tribunal has the power to impose costs, including exemplary costs, on the party seeking adjournment with insufficient cause.
- The parties must issue sufficient notice before any hearing and of any meeting of the arbitral tribunal for the needs of inspection of documents, goods or other property.
- All statements, documents or other information supplied to or applications made to the arbitral tribunal by one party must be communicated to the opposite party. The shreds of evidence must be communicated to both parties.
- If without showing sufficient cause, the claimant fails to speak their statement of claim, the arbitral tribunal must terminate the proceedings.
- Suppose without showing sufficient cause. The respondent fails to speak their statement of defense. In that case, the arbitral tribunal must continue the proceedings without treating that failure in itself as an admission of the allegations by the claimant. It must have the discretion to treat the right of the respondent to file such a statement of defense as having been forfeited.
- Suppose without showing sufficient cause. A party fails to appear at an oral hearing or to supply documentary evidence. In that case, the arbitral tribunal can continue the proceedings and make the arbitral award on the evidence before it.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, or Religion, Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre Foundation shall not be responsible for any errors caused due to human error or otherwise.