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CS Professional · Arbitration, Mediation and Conciliation · Emerging Aspects: Fast Track and Virtual Arbitration

Under a fast track agreement, a sole arbitrator holds an oral hearing at the request of both Gupta Pharma Ltd and Nilgiri Labs Ltd. At the hearing the arbitrator waives strict rules of procedure and adopts a streamlined approach. A party objects that this violates the agreed procedure. Which statement is correct?

The objection fails. Section 29B(3)(d) allows the tribunal, when an oral hearing is held, to dispense with technical formalities and adopt a procedure it considers appropriate for expeditious disposal. Section 19(1) also frees it from the Code of Civil Procedure and the Evidence Act.

  1. AThe objection succeeds because technical formalities can never be dispensed with in an oral hearing
  2. BThe objection fails because Section 29B(3)(d) allows the tribunal to dispense with technical formalities if an oral hearing is held and adopt procedure it considers appropriate for expeditious disposalCorrect
  3. CThe objection succeeds because the Code of Civil Procedure, 1908 binds the tribunal in oral hearings
  4. DThe objection fails only if the Court approves the streamlined procedure

Explanation

Section 29B(3)(d) lets the tribunal dispense with technical formalities if an oral hearing is held and adopt appropriate procedure for expeditious disposal. This is consistent with Section 19(1), under which the tribunal is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. No Court approval is required.

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