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

Kaveri Textiles Ltd and Sundaram Dyes Pvt Ltd have an arbitration agreement that is silent on whether hearings are to be oral. Kaveri requests an oral hearing at an appropriate stage, but the tribunal prefers to decide the matter on documents alone. The parties have not agreed that no oral hearing shall be held. What is the correct position?

The tribunal must hold an oral hearing at an appropriate stage. Section 24(1) lets the tribunal choose the mode of proceedings, but its proviso requires an oral hearing when a party requests one, unless the parties have agreed that no oral hearing shall be held. Here there is no such agreement.

  1. AThe tribunal must hold an oral hearing at an appropriate stage because a party has requested itCorrect
  2. BThe tribunal may refuse, as the choice between oral and documentary proceedings is always its own
  3. CThe tribunal may hold an oral hearing only if both parties request it
  4. DThe tribunal may hold an oral hearing only with the permission of the Court

Explanation

Under Section 24(1), the tribunal decides the mode of proceedings unless the parties have agreed otherwise. The first proviso, however, obliges it to hold oral hearings at an appropriate stage when a party requests one, unless the parties have agreed that no oral hearing shall be held. No such agreement exists here, so the tribunal cannot refuse. The option giving the tribunal an absolute choice ignores this proviso.

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