Skip to content

Arbitration, Mediation and Conciliation · Arbitration Procedure, Appointment of an Arbitrator and Other Aspects

Arbitration Procedure and Conduct of Proceedings Explained

Updated 11 October 2026 · Fact-checked

Arbitration procedure is the set of rules by which a tribunal runs a case. Parties are free to agree the procedure and language. If they do not, the tribunal decides. It is not bound by the CPC or the Evidence Act. Pleadings, hearings, default and evidence are governed by Sections 19 to 27.

Understand Arbitration Procedure and Conduct of Proceedings

Arbitration is private dispute resolution, so the law lets the parties design the process. Section 19 says the tribunal is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. The parties can agree on the procedure, subject to Part I of the Act. If they have not agreed, the tribunal may conduct proceedings in the manner it considers appropriate, again subject to Part I. This includes the power to decide the admissibility, relevance, materiality and weight of evidence.

The language works the same way under Section 22. The parties may agree on the language or languages. Failing agreement, the tribunal decides. Unless otherwise specified, the choice covers written statements, hearings and the award and other communications by the tribunal. The tribunal may order that documentary evidence come with a translation into the agreed or determined language.

The case then moves through pleadings. Under Section 23, within the time agreed by the parties or fixed by the tribunal, the claimant states the facts supporting the claim, the points at issue and the relief sought. The respondent states his defence on those particulars. The respondent may also file a counterclaim or plead a set-off, which the tribunal decides if it falls within the arbitration agreement. Either party may amend or supplement the claim or defence unless the tribunal finds the amendment inappropriate because of delay. Pleadings must be completed within six months from the date the arbitrator or all the arbitrators received written notice of appointment.

Next come hearings. Section 24 lets the tribunal decide whether to hold oral hearings or proceed on documents, unless the parties have agreed otherwise. But if a party requests an oral hearing, the tribunal must hold one at an appropriate stage, unless the parties agreed that none will be held. Hearings should, as far as possible, be held day-to-day, and adjournments are not granted without sufficient cause. Costs, including exemplary costs, can be imposed for an adjournment sought without sufficient cause. Parties get sufficient advance notice of hearings and inspections, and everything one party supplies must be shared with the other.

Seat and venue are often confused. The seat is the legal home of the arbitration and decides which court has supervisory jurisdiction. The venue is where hearings are physically held. The two can differ. This section text does not define them, so read the seat and venue topic with this one.

Key rules to remember

Procedural freedom (Section 19)
Tribunal not bound by CPC, 1908 or Evidence Act, 1872. Parties agree procedure; failing that, tribunal decides.
Always subject to Part I of the Act. The tribunal also decides admissibility, relevance, materiality and weight of evidence.
Language (Section 22)
Parties agree language; failing agreement, tribunal determines it.
Applies to written statements, hearings, awards and tribunal communications unless otherwise specified. Tribunal may order translations of documents.
Claim and defence (Section 23)
Claimant: facts + points at issue + relief sought. Respondent: defence on the same particulars.
Counterclaim or set-off allowed if within the arbitration agreement. Pleadings to be completed within 6 months of the arbitrator(s) receiving written notice of appointment.
Amendment (Section 23(3))
Amendment allowed unless agreed otherwise or tribunal finds it inappropriate due to delay.
Delay is the tribunal's test for refusing an amendment.
Hearings (Section 24)
Tribunal decides oral or documents-only; must hold oral hearing if a party requests, unless parties agreed no oral hearing.
Day-to-day hearings as far as possible; no adjournment without sufficient cause; costs may be imposed.
Default (Section 25)
Claimant fails to file claim: proceedings terminated. Respondent fails to file defence: proceedings continue, no deemed admission. Party fails to appear or produce evidence: tribunal may proceed to award.
Applies only where no sufficient cause is shown and parties have not agreed otherwise. For the respondent, the tribunal may treat the right to file defence as forfeited.
Court assistance in evidence (Section 27)
Tribunal, or a party with the tribunal's approval, may apply to the Court for help in taking evidence.
The application must give names and addresses of parties and arbitrators, nature of claim and relief, and the evidence sought.

How to solve Arbitration Procedure and Conduct of Proceedings questions

Most questions give a fact pattern and ask whether a step was valid. Use the same sequence every time and tie each point to a section.

  1. 1Identify the stage in the facts: procedure, language, pleadings, hearing, default or evidence.
  2. 2Check first whether the parties agreed anything. Most provisions begin with party autonomy.
  3. 3If there is no agreement, state who decides (usually the tribunal) and the fallback rule.
  4. 4Quote the rule in plain words with the section number, for example Section 24(1) proviso for a request for an oral hearing.
  5. 5Apply the rule to the facts: dates, who failed to do what, and whether sufficient cause was shown.
  6. 6Check any time limit, such as the six months for pleadings under Section 23(4).
  7. 7State a clear conclusion and any practical step, such as filing an application or seeking a translation.

Quickest way: Agree, else tribunal, then section

When to use it: Use when you have under ten minutes for a short-note or application question.

  1. Write: parties free to agree, subject to Part I.
  2. Write the fallback: tribunal decides.
  3. Name the section and its one key condition.
  4. Apply in two or three lines and conclude.

Common mistakes in Arbitration Procedure and Conduct of Proceedings

  • Saying the CPC and Evidence Act apply to arbitration.

    Students assume arbitration copies court procedure.

    Fix: Remember Section 19(1): the tribunal is not bound by either. It still must follow Part I and treat parties fairly.

  • Treating a respondent's failure to file a defence as an admission of the claim.

    It sounds like an ex parte decree in a civil suit.

    Fix: Section 25(b) says proceedings continue without treating the failure itself as an admission. The tribunal may treat the right to file defence as forfeited.

  • Saying proceedings end if any party defaults.

    Mixing up the three limbs of Section 25.

    Fix: Only a claimant's failure to file the claim without sufficient cause ends the proceedings. Otherwise the tribunal continues.

  • Saying the tribunal can refuse an oral hearing even when a party asks.

    Students read only the first part of Section 24(1).

    Fix: The first proviso makes an oral hearing mandatory on request at an appropriate stage, unless the parties agreed there would be none.

  • Ignoring the six-month limit for pleadings.

    Time limits are often remembered only for the award.

    Fix: Section 23(4) requires claim and defence to be completed within six months from the arbitrator(s) receiving written notice of appointment.

  • Confusing seat with venue.

    Both words suggest a place.

    Fix: Seat is the legal anchor deciding court supervision. Venue is where hearings are held. Say so explicitly and state that they can differ.

Worked examples

Example 1

Alpha Ltd and Beta Pvt Ltd have an arbitration clause that is silent on procedure and language. The contract is in English, but Beta's documents are in Hindi. Beta also says the tribunal must follow the Code of Civil Procedure. Advise.

Show the solution
  1. Procedure: Section 19(2) lets parties agree procedure. They did not, so under Section 19(3) the tribunal may conduct proceedings as it considers appropriate, subject to Part I.
  2. CPC: Section 19(1) says the tribunal is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. Beta's contention fails.
  3. Language: Section 22(1) lets parties agree. With no agreement, Section 22(2) makes the tribunal determine the language.
  4. Documents: Under Section 22(4) the tribunal may order that documentary evidence be accompanied by a translation into the language determined.

Answer: The tribunal decides procedure and language. It is not bound by the CPC. It may fix English as the language and require translations of Beta's Hindi documents.

Example 2

In an arbitration, the claimant, Ravi Traders, filed its statement of claim on time. The respondent, Sharma Exports, did not file a defence and gave no reason. Later it failed to appear at the oral hearing. Sharma argues that its silence means nothing and that the tribunal must adjourn. Ravi argues the claim is admitted. Decide.

Show the solution
  1. Defence default: Section 25(b) says the tribunal continues the proceedings without treating the failure in itself as an admission. It may also treat the right to file the defence as forfeited. Ravi's argument that the claim is admitted fails.
  2. Non-appearance: Section 25(c) says that 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.
  3. Adjournment: Section 24(1), second proviso says no adjournment unless sufficient cause is made out. Costs, including exemplary costs, may be imposed on a party seeking an adjournment without sufficient cause. No cause was shown.
  4. Fairness: Section 24(2) and (3) require notice of hearings and sharing of documents. If notice was given, the tribunal may go ahead.

Answer: There is no deemed admission, so Ravi is wrong. Sharma is also wrong: the tribunal need not adjourn and may proceed and make the award on the evidence before it, provided Sharma had proper notice.

Exam tips

  • Begin every answer with party autonomy, then the tribunal's fallback power, then the section.
  • Memorise the three limbs of Section 25 separately. Examiners often change one fact to test which limb applies.
  • Use words from the Act: 'sufficient cause', 'in itself an admission', 'at an appropriate stage'. Open-book candidates should still know the structure by heart.
  • Mention the six-month limit under Section 23(4) and the day-to-day hearing rule whenever delay is in the facts.
  • End with a clear conclusion and a practical step, such as an application under Section 27 for court help in taking evidence.

Practice questions from Arbitration Procedure, Appointment of an Arbitrator and Other Aspects

Arbitration Procedure and Conduct of Proceedings in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Arbitration Procedure and Conduct of Proceedings: frequently asked questions

Is the arbitral tribunal bound by the Code of Civil Procedure?

No. Section 19(1) says the tribunal is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. It must still follow Part I of the Act and give parties equal and fair treatment.

What is the difference between seat and venue of arbitration?

The seat is the legal place of arbitration and decides which court supervises the process. The venue is where meetings and hearings are physically held. They can be different places.

Can a party add a counterclaim in arbitration?

Yes. Under Section 23(2A) the respondent may submit a counterclaim or plead a set-off. The tribunal decides it if it falls within the scope of the arbitration agreement.

Must the tribunal hold an oral hearing?

Not always. Unless the parties agree otherwise, the tribunal decides whether to hold oral hearings or proceed on documents. If a party requests an oral hearing, the tribunal must hold one at an appropriate stage, unless the parties agreed there would be none.

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

Under Section 25(a), if the claimant fails to communicate the statement of claim without showing sufficient cause, the tribunal shall terminate the proceedings. This is unless the parties agreed otherwise.