Conduct of Arbitral Proceeding: Section 23 of Arbitration and Conciliation Act | Law Optional Notes for UPSC PDF Download

Section 23 of Arbitration and Conciliation Act– Statements of claim and defence

Statement:

• Claimant must state facts supporting the claim, points at issue, and relief sought.
• Respondent must state defense and relevant information unless agreed otherwise.
• Parties can submit relevant documents with their statements.

Fixed Time Schedule:

• Claims and defenses must be within agreed time frames.
• Claimant to provide necessary details of the claim.
• Respondent to present defense and relevant information.

Pleadings:

• Pleadings are crucial to narrow issues and reduce costs.
• Parties may amend claims or defenses during proceedings.
• Amendment allowed if requested promptly.

Overview of The Arbitration and Conciliation Act, 1996

Section 23: Statements of Claim and Defence

• Section 23 of the Arbitration and Conciliation Act, 1996 deals with the requirements for statements of claim and defence in arbitral proceedings. It mandates that the claimant must present the facts supporting their claim, the issues at hand, and the relief sought within the agreed-upon timeframe. Similarly, the respondent is required to provide their defense concerning these specifics unless otherwise agreed upon by the parties.
• Example: If Company A and Company B enter into an arbitration process regarding a contract dispute, Company A, as the claimant, must outline the facts supporting their claim for breach of contract. Company B, as the respondent, then has to present their defense against these claims.
• Furthermore, parties are permitted to include relevant documents with their statements or reference documents they plan to submit as evidence.

Key Provisions in Arbitration Proceedings

• Submission of Documents: Parties can include relevant documents with their statements or refer to the evidence they will submit.
• Counterclaim or Set-off: The respondent can present a counterclaim or set-off for consideration if it aligns with the arbitration agreement.
• Amendment of Claims or Defenses: Either party can modify or supplement their claim or defense during the arbitration, unless the tribunal deems it untimely.
• Timely Completion of Statements: The statement of claim and defense must be finalized within six months from the arbitrator's appointment notification.