Judiciary Exams Exam  >  Judiciary Exams Notes  >  Civil Law for Judiciary Exams  >  Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act

Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams PDF Download

Section 19 of Arbitration and Conciliation Act: Determination of rules of procedure

Statement:

  • The arbitral tribunal is not bound by the Code of Civil Procedure, 1908, or the Indian Evidence Act, 1872.
  • Parties can agree on the procedure for the arbitral tribunal's proceedings.
  • In the absence of an agreement, the arbitral tribunal can conduct proceedings as it deems appropriate.
  • The tribunal has the power to decide on the admissibility, relevance, materiality, and weight of evidence.

In simpler terms, the arbitral tribunal in arbitration cases has flexibility in setting its procedural rules and is not strictly bound by specific legal codes. Parties involved can mutually decide on the procedures to be followed. If there is no agreement, the tribunal can proceed as it sees fit. Additionally, the tribunal has the authority to make decisions regarding which evidence is admissible, relevant, and significant in the case.

Arbitrator's Independence from Civil Procedure Code

  • Arbitration under the 1996 Act is not subject to the Civil Procedure Code, as highlighted in Section 19(1) of the Act.
  • Arbitrators are not obligated to adhere to the procedural formalities outlined in the Civil Procedure Code, distinguishing them from conventional judicial proceedings.
  • Unlike courts following the Civil Procedure Code, arbitrators are not required to frame specific issues before rendering a decision.
  • For instance, in the case of Ashok Kumar Singh vs. Shanti Devi (2011), it was established that arbitrators are not constrained by the procedural intricacies mandated by the Civil Procedure Code.
  • Arbitrators possess the autonomy to address multiple claims or disputes collectively, deviating from the meticulous scrutiny of individual issues stipulated under Order 14, Rule 1 of the CPC.
  • An arbitral award is not mandated to explicitly resolve every matter of contention in a separate and formal manner.

Question for Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act
Try yourself:
Under the Arbitration and Conciliation Act, the arbitral tribunal is not bound by which legal codes?
View Solution

Arbitration Not Governed by Evidence Act

  • An arbitrator is not required to adhere strictly to the Evidence Act, as established in the case of J. Kaikobad vs. F. Khambatta (1930). The arbitrator's decision cannot be contested on the basis of using documents that may not be admissible under the Act.
  • The constraints on an arbitrator's authority include upholding the principles of natural justice, providing both parties with a fair hearing, and allowing them adequate time and opportunity to support their claims.
  • In the case of I.O.C. Ltd. vs. Devi Const. Engg. Contractors (2008), it was emphasized that an arbitrator's decision to not exclude a document as inadmissible does not warrant overturning the award. Arbitration processes do not rigidly apply the strict rules of evidence.

Inexpensive Arbitration

  • When a court appoints an arbitrator without specifying fees, it can lead to disadvantages for the parties involved.
  • Parties may feel pressured to agree to any fees proposed by the arbitrator, even if the fees are high or beyond their financial means.
  • If one party agrees to pay high fees suggested by the arbitrator, the other party may be unable to afford or reluctant to pay such fees, putting them in a difficult position.
  • This situation can create bias or prejudice, as one party's agreement to high fees may influence the outcome of the arbitration.
  • The duties of the tribunal include conducting proceedings promptly, attending hearings, following the agreed procedure, and addressing all relevant issues.

Arbitrator to Appreciate Evidence

  • The arbitrator must base decisions on evidence following principles of natural justice.
  • According to Lord Denning in G.K.N. Centrax Gears Ltd. vs. Matbro Ltd. (1976), the arbitrator holds the authority to weigh evidence and draw inferences. Arbitration exists to mitigate technical risks in evidence assessment, making the arbitrator's decisions final.
  • Determining the relevance and necessity of presenting a document lies within the arbitrator's discretion. Parties are bound by the arbitrator's decision, and challenging it based on document proof is not valid.
  • In the legal case of Spettigue vs. Carpenter (1735 PW), a crucial aspect emerged where a party requested the arbitrator to delay the award until certain concerns were addressed. Despite the proximity to the award deadline, the arbitrator proceeded without granting the request. 
  • The court intervened, noting the plaintiff's valid reasons for seeking a hearing, although readiness within the timeline was not established, leading to the award being set aside.
  • If an arbitrator rushes the award process, failing to provide adequate opportunity for a party responsible for delays to present their case, and neglects to give notice of the imminent award, the court may invalidate the award.

Question for Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act
Try yourself:
What constraints are placed on an arbitrator's authority?
View Solution

The document Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams is a part of the Judiciary Exams Course Civil Law for Judiciary Exams.
All you need of Judiciary Exams at this link: Judiciary Exams
253 docs|259 tests

Up next

FAQs on Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act - Civil Law for Judiciary Exams

1. How does Section 19 of the Arbitration and Conciliation Act relate to determining the rules of procedure in arbitration proceedings?
Ans. Section 19 of the Arbitration and Conciliation Act allows the parties to an arbitration to agree on the rules of procedure to be followed during the arbitration. If the parties do not reach an agreement, the arbitrator has the authority to determine the rules of procedure.
2. How does the Arbitrator's independence from the Civil Procedure Code affect the arbitration process?
Ans. The arbitrator's independence from the Civil Procedure Code allows for a more flexible and efficient arbitration process, as the arbitrator is not bound by the strict procedural requirements of the Code.
3. Why is arbitration not governed by the Evidence Act in India?
Ans. Arbitration is not governed by the Evidence Act in India to allow for a more informal and expeditious resolution of disputes. This allows the arbitrator to consider evidence in a more flexible manner without being restricted by the technical rules of evidence.
4. How does Section 19 of the Arbitration and Conciliation Act promote inexpensive arbitration?
Ans. Section 19 of the Arbitration and Conciliation Act promotes inexpensive arbitration by allowing the parties to agree on the rules of procedure and conduct of the arbitration. This flexibility in procedure can help reduce costs associated with the arbitration process.
5. Why is it important for the arbitrator to appreciate evidence during the arbitration proceedings?
Ans. It is important for the arbitrator to appreciate evidence during the arbitration proceedings to make informed decisions and arrive at a fair and just conclusion. By understanding the evidence presented by the parties, the arbitrator can make an impartial judgment based on the facts of the case.
253 docs|259 tests
Download as PDF

Up next

Explore Courses for Judiciary Exams exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams

,

Exam

,

Previous Year Questions with Solutions

,

Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams

,

Important questions

,

Sample Paper

,

past year papers

,

Semester Notes

,

Summary

,

study material

,

mock tests for examination

,

Free

,

Viva Questions

,

Extra Questions

,

ppt

,

Conduct of Arbitral Proceeding: Section 19 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams

,

practice quizzes

,

pdf

,

video lectures

,

Objective type Questions

,

MCQs

,

shortcuts and tricks

;