Skip to content

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

In an arbitration, Kaveri Textiles (respondent) has filed its defence. It then wishes to add a set-off for Rs 8 lakh of advance paid under the same contract that contains the arbitration clause. Which position is correct?

The respondent may plead the set-off. The Act allows a respondent to submit a counterclaim or plead a set-off in support of its case, and the tribunal adjudicates it provided it falls within the scope of the arbitration agreement. Claimant consent is not required.

  1. AA set-off can be pleaded only in a separate court suit, never before the tribunal
  2. BThe respondent may plead the set-off, and the tribunal will adjudicate it if it falls within the scope of the arbitration agreementCorrect
  3. CThe tribunal must reject it because only a counterclaim, not a set-off, is permitted
  4. DIt is allowed only if the claimant consents in writing

Explanation

Section 23(2A) lets the respondent, in support of its case, submit a counterclaim or plead a set-off, which the tribunal adjudicates if it falls within the scope of the arbitration agreement. The set-off arises under the same contract, and no claimant consent is needed.

Did you get it right without looking?

One question tells you little. A timed set on Arbitral Proceedings, Pleadings and Evidence shows your real accuracy, how long you take and where you lose marks.

Practise Arbitral Proceedings, Pleadings and EvidenceFree diagnostic mock

More Arbitral Proceedings, Pleadings and Evidence questions