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.