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

Arbitrators in a dispute between Nilgiri Power Ltd and Orient Fabrication Co. received written notice of their appointment on 1 March. The parties agreed nothing on timing of pleadings beyond the Act. Orient (respondent) files no defence and shows no sufficient cause, and the claim was filed in time. Which course is consistent with the Act?

The tribunal continues the proceedings. A respondent's failure to file a defence without sufficient cause is not by itself an admission of the claimant's allegations, and the tribunal has discretion to treat the respondent's right to file the defence as forfeited. Termination applies only to a defaulting claimant.

  1. AThe tribunal must terminate the proceedings
  2. BThe tribunal must treat all claimant allegations as admitted and pass an award
  3. CThe tribunal must adjourn indefinitely until the respondent files
  4. DThe tribunal continues the proceedings without treating the failure as an admission, and may treat the respondent's right to file a defence as forfeitedCorrect

Explanation

Section 25(b) says that where the respondent fails without sufficient cause to communicate its defence, the tribunal continues the proceedings without treating that failure itself as an admission, and has discretion to treat the right to file a defence as forfeited. Termination applies to a defaulting claimant under 25(a), which is the key distractor. The pleadings are also to be completed within six months of the arbitrators' notice of appointment under section 23(4).

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