Arbitration, Mediation and Conciliation · Arbitral Proceedings, Pleadings and Evidence

Hearings, Written Proceedings and Default of a Party in Arbitration

Updated 11 October 2026 · Fact-checked

Under Section 24, the tribunal decides whether to hold oral hearings or proceed on documents, but must hold a hearing if a party asks, unless the parties agreed otherwise. Section 25 deals with default: if the claimant fails to file a claim, the proceedings terminate; if the respondent fails to file a defence, they continue; if a party fails to appear, the tribunal may award on the evidence before it.

Understand Hearings, Written Proceedings and Default of a Party

An arbitral tribunal is not a court, so the parties and the tribunal have wide freedom over how evidence and arguments are presented. Section 24 sets the basic rule. Unless the parties have agreed otherwise, the tribunal decides whether to hold oral hearings for evidence or oral argument, or to proceed on documents and other materials.

That freedom has a limit. If a party requests an oral hearing, the tribunal shall hold one at an appropriate stage, unless the parties have agreed that no oral hearing will be held. Also, the tribunal should, as far as possible, hold hearings on a day-to-day basis and not grant adjournments unless sufficient cause is made out. It may impose costs, including exemplary costs, on a party seeking adjournment without sufficient cause.

Fairness rules sit alongside. Under Section 24(2), the parties must get sufficient advance notice of any hearing and of any tribunal meeting for inspecting documents, goods or other property. Under Section 24(3), everything one party supplies to the tribunal must be communicated to the other party. Any expert report or evidentiary document the tribunal may rely on must also be communicated to the parties.

Section 25 covers default. It applies unless the parties have agreed otherwise, and only where the party fails without showing sufficient cause. The consequence depends on who defaults and how. Failure by the claimant to file the statement of claim ends the proceedings. Failure by the respondent to file a defence does not stop them. Failure to appear or produce documents lets the tribunal go on and decide on the material it has.

The idea is simple: a party cannot stall arbitration by staying silent, but a silent respondent is not presumed to have admitted the claim. The tribunal still has to be satisfied on the evidence.

Key rules to remember

Mode of hearing (S.24(1)): Unless parties agree otherwise: tribunal decides oral hearing or documents only; Proviso: tribunal must hold an oral hearing on a party's request, unless parties agreed no oral hearing shall be held.
Day-to-day hearings (second proviso to S.24(1)): As far as possible, day-to-day hearings; no adjournment without sufficient cause; Tribunal may impose costs, including exemplary costs, on a party seeking adjournment without sufficient cause.
Notice (S.24(2)): Sufficient advance notice of every hearing and every inspection meeting; Covers inspection of documents, goods or other property.
Communication (S.24(3)): All statements, documents, applications and expert reports relied on must reach the other party; This is the natural-justice safeguard in written proceedings.
Claimant's default (S.25(a)): No statement of claim under S.23(1) without sufficient cause → tribunal shall terminate proceedings; Termination is mandatory, subject to contrary agreement.
Respondent's default (S.25(b)): No statement of defence without sufficient cause → proceedings continue; not an admission in itself; Tribunal has discretion to treat the right to file the defence as forfeited.
Party's default at hearing (S.25(c)): Fails to appear or produce documents without sufficient cause → tribunal may continue and make award on evidence before it; The word is 'may', so it is discretionary.

How to solve Hearings, Written Proceedings and Default of a Party questions

Use this method for any problem or case question on hearings, written proceedings or default.

1Identify the stage: pleadings (Section 23 statements), a hearing, or document production.
2Check for a party agreement. Both Section 24(1) and Section 25 operate 'unless otherwise agreed'.
3For hearing questions, apply Section 24(1): who decides the mode, and was an oral hearing requested? Note the proviso.
4Check procedural fairness: advance notice (S.24(2)) and communication of documents and expert reports (S.24(3)).
5For default, identify who defaulted and in what way: claim, defence, appearance or documents.
6Ask whether the default was without sufficient cause. If cause is shown, Section 25 does not apply.
7Apply the matching consequence from Section 25(a), (b) or (c) and use the exact wording (shall terminate, shall continue, may continue).
8Conclude clearly and add a practical point, such as recording reasons or giving a last opportunity.

Quickest way: Who defaulted, what did they miss?

When to use it: Short case questions where you must name the consequence fast.

Write: 'Unless otherwise agreed and without sufficient cause, Section 25 applies.'
Claimant, no claim: proceedings terminate.
Respondent, no defence: proceedings continue; no automatic admission; right to defend may be treated as forfeited.
Any party, no appearance or documents: tribunal may proceed to award on the evidence.
For hearings: tribunal decides mode, but must hold oral hearing if requested (unless agreed otherwise).

Common mistakes in Hearings, Written Proceedings and Default of a Party

Saying the respondent's failure to file a defence means the claim is admitted.
Students carry over the idea of ex parte decrees in civil suits.
Fix: State that Section 25(b) says the failure is not in itself an admission. The tribunal continues and decides on the evidence.
Saying the tribunal can refuse an oral hearing even when a party asks for one.
Students remember that the tribunal decides the mode and forget the proviso.
Fix: Add that the tribunal must hold an oral hearing on request, unless the parties have agreed that no oral hearing shall be held.
Ignoring 'without showing sufficient cause'.
Students focus on the consequence and skip the condition.
Fix: Always say Section 25 applies only where the default is without sufficient cause, and unless the parties agreed otherwise.
Treating claimant's default and respondent's default alike.
Both are failures to file a statement under Section 23(1).
Fix: Claimant default ends the proceedings; respondent default lets them continue.
Saying the tribunal must pass an award when a party does not appear.
Confusing 'may' in Section 25(c) with 'shall'.
Fix: Use 'may continue the proceedings and make the award on the evidence before it'. It is a discretion.
Forgetting notice and communication duties in written proceedings.
Students think that without hearings there is nothing to notify.
Fix: Mention Section 24(2) notice for hearings and inspection meetings, and Section 24(3) sharing of documents and expert reports.

Worked examples

Example 1

Alpha Infra Ltd (claimant) and Beta Steels Ltd (respondent) are in arbitration in Mumbai. The agreement is silent on hearings. Beta requests an oral hearing for cross-examination of witnesses. The tribunal proposes to decide on documents alone. Advise whether the tribunal can do so.

Show the solution

Provision: Section 24(1) lets the tribunal decide whether to hold oral hearings or proceed on documents, unless the parties have agreed otherwise.
Facts: The agreement is silent, so no agreement bars an oral hearing. Beta has made a request.
Analysis: The first proviso says the tribunal shall hold oral hearings, at an appropriate stage, on a party's request, unless the parties agreed that no oral hearing shall be held.
Fairness: Beta must receive sufficient advance notice of the hearing under Section 24(2).
Conclusion: The tribunal cannot proceed on documents alone.

Answer: No. Because Beta requested an oral hearing and there is no agreement excluding it, the tribunal must hold one at an appropriate stage, with sufficient advance notice to the parties. The tribunal keeps control of timing and should hold hearings day-to-day as far as possible, avoiding adjournments without sufficient cause.

Example 2

In an arbitration, Ravi Traders (respondent) does not file its statement of defence within the time set by the tribunal and gives no reason. Later it also stays away from the hearing. The claimant, Sharma Exports, argues that all its allegations are deemed admitted and an award must be passed immediately. Examine.

Show the solution

Provision: Section 25 applies unless the parties have agreed otherwise, where default occurs without showing sufficient cause.
Defence default: Under Section 25(b), the tribunal shall continue the proceedings without treating the failure in itself as an admission of the claimant's allegations. It may also treat the respondent's right to file the defence as forfeited.
Non-appearance: Under Section 25(c), where a party fails to appear at an oral hearing, the tribunal may continue and make the award on the evidence before it.
Analysis: Sharma's claim of deemed admission is wrong. The tribunal must still consider the evidence. Passing an award immediately is also not mandatory, since 'may' is used in clause (c).
Practical point: The tribunal should record the default, ensure Ravi Traders had notice, and decide on the material before it.
Conclusion: Proceedings continue ex parte as to Ravi Traders, with no deemed admission.

Answer: The argument fails. Ravi Traders' silence is not in itself an admission. The tribunal will continue, may treat the right to file the defence as forfeited, and may make the award on the evidence before it. It is not bound to award as claimed.

Exam tips

Quote the key phrases: 'unless otherwise agreed', 'without showing sufficient cause', 'shall terminate', 'shall continue', 'may continue'.
Use a table-free comparison in the answer: claimant default, respondent default, default at hearing, each with its consequence.
In case questions, check whether the facts show notice was given. A defaulting party who never got notice may show sufficient cause.
Link Section 25 to Section 23(1) (statement of claim and defence) to show you know where the default arises.
Do not quote section numbers beyond those you are sure of; Sections 23, 24 and 25 are safe here.

Practice questions from Arbitral Proceedings, Pleadings and Evidence

Hearings, Written Proceedings and Default of a Party: frequently asked questions

Can an arbitral tribunal decide a case without any oral hearing?

Yes, if the parties have agreed that no oral hearing shall be held, or if no party requests one and the tribunal decides to proceed on documents. Once a party requests an oral hearing, the tribunal must hold one unless the parties agreed otherwise.

What happens if the respondent does not appear in arbitration?

Under Section 25(c), if a party fails to appear at an oral hearing without sufficient cause, the tribunal may continue the proceedings and make the award on the evidence before it. This is often called an ex parte award, but the tribunal must still rely on evidence.

What happens if the claimant does not file the statement of claim?

If the claimant fails, without sufficient cause, to communicate the statement of claim under Section 23(1), the tribunal shall terminate the proceedings under Section 25(a), unless the parties have agreed otherwise.

Is failure to file a defence an admission of the claim?

No. Section 25(b) says the tribunal continues without treating the failure in itself as an admission. The tribunal may, however, treat the respondent's right to file the statement of defence as forfeited.

Can a tribunal penalise a party for seeking adjournments?

Yes. The second proviso to Section 24(1) lets the tribunal refuse adjournments unless sufficient cause is made out, and impose costs, including exemplary costs, on a party seeking adjournment without sufficient cause.