Conduct of Arbitral Proceeding: Section 24 of Arbitration and Conciliation Act
Section 24: Conduct of Arbitral Proceedings
Text of Section 24 (Summary)
Section 24 sets out the powers and duties of the arbitral tribunal regarding the conduct of the arbitration process.
Detailed Explanation
Autonomy of the Arbitral Tribunal
The arbitral tribunal has full authority to conduct the arbitration proceedings in the manner it considers appropriate, subject to the provisions of the Act, the arbitration agreement, and any rules agreed upon by the parties.
This means the tribunal can decide procedural matters, including how evidence is presented, hearings are conducted, and timelines are managed.
Equal Treatment and Fairness
The tribunal must treat all parties with equality and ensure that each party has a full opportunity to present its case.
This is a fundamental principle of natural justice — no party should be unfairly disadvantaged.
Determination of Procedure
The tribunal can decide the place, date, and language of the hearings.
It can determine the admissibility, relevance, materiality, and weight of evidence.
It can also conduct physical inspection of goods, documents, or property if necessary.
Power to Call for Evidence and Witnesses
The tribunal may require the parties to produce documents or evidence and can summon witnesses to testify.
Application of Rules of Evidence
Unless the parties agree otherwise, the tribunal is not bound by strict rules of evidence as applicable in courts. This allows flexibility and efficiency.
Taking of Evidence
The tribunal may decide whether to hold oral hearings or decide the dispute on the basis of documents submitted by the parties.
Default Proceedings
If a party fails to appear or comply with procedural directions, the tribunal may proceed with the arbitration and make a decision based on the available material.
Summary of Key Points in Section 24
| Aspect | Details |
|---|---|
| Control over proceedings | Tribunal controls procedure subject to law and agreement |
| Equal treatment | All parties must be treated fairly and given chance to present case |
| Evidence | Tribunal decides on admissibility and weight of evidence |
| Flexibility | Not bound by strict court rules of evidence |
| Hearings | Tribunal decides on oral or documentary hearings |
| Default | Can proceed if a party is absent or non-compliant |
Importance of Section 24
It ensures the arbitral tribunal has flexibility and autonomy to manage proceedings efficiently.
It balances fairness with the need for speedy and cost-effective resolution.
Prevents rigid procedural delays common in courts.
Supports the party autonomy principle by allowing parties to agree on procedure or let the tribunal decide.
Relevant Case Law
1. S.B.P. & Co. v. Patel Engineering Ltd., AIR 2005 SC 450
The Supreme Court emphasized the autonomy of the arbitral tribunal to conduct proceedings and decide admissibility of evidence.
The tribunal is not bound by strict rules of evidence and has discretion to proceed even if a party is absent.
2. M/S. Venture Global Engineering v. Satyam Computer Services Ltd., (2008) 4 SCC 190
The Court reiterated that the tribunal must act fairly and give both parties equal opportunity, but procedural flexibility is allowed.
Conclusion
Section 24 empowers the arbitral tribunal with the freedom and responsibility to conduct the proceedings efficiently and fairly, ensuring justice is delivered without undue procedural formalities. It is central to arbitration’s effectiveness as a dispute resolution mechanism.
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