Conduct of Arbitral Proceeding: Section 24 of Arbitration and Conciliation Act | Law Optional Notes for UPSC PDF Download

Section 24 of the Arbitration and Conciliation Act deals with Hearings and written proceedings

• When it comes to holding oral hearings for evidence or arguments, the arbitral tribunal will make the decision unless the parties have agreed otherwise. However, if a party requests an oral hearing at a suitable stage of the proceedings, one must be held.
• Parties involved must receive ample notice of any hearings and meetings for document inspection.
• All information, statements, or documents provided by one party to the arbitral tribunal should be shared with the other party. Any expert reports or evidentiary documents used by the tribunal must also be shared with all parties involved.

Dispensing Oral Hearing

• When an oral hearing is requested by either party during arbitration proceedings, it becomes the duty of the arbitrator to provide one. This was established in the case of ADV Consultants vs. Pioneer Equity Trade (India) Pvt. Ltd. (2009). 
• The arbitral tribunal must grant an oral hearing unless both parties have previously agreed to waive this right. 
• Failure to allow an oral hearing upon request may lead to the arbitral award being set aside, as seen in the case of Rakesh Kumar vs. State of H.P. (2005).

Steps to be Followed in Arbitration

• Fixing the procedure
• Defining the issues
• Production and preparation of documents
• Issuing interim protection orders
• Issuing orders for security
• Arranging the hearing
• Investigating facts and law, conducting the hearing
• Reaching a decision
• Issuing the award
• Handling appeal proceedings

Managing Hearing

• The arbitrator is generally considered to have control over procedural matters, with some limitations set by the arbitration agreement and the mandatory provisions of the Act. The tribunal is empowered to prevent unnecessary delays and expenses in the arbitration process. It should actively manage the proceedings by indicating to the parties the relevant areas of focus and disregarding those deemed irrelevant to the core dispute. The arbitrator should also consider the possibility that parties may prefer a swift and cost-effective resolution over a prolonged pursuit of perfect justice.
• It is the duty of the arbitrator to inform the opposing party about communications received. According to the proviso to section 24(1), if parties request to present oral evidence before the arbitral award, the tribunal must conduct an oral hearing. The tribunal has the discretion to decide whether a party or witness should be examined under oath or affirmation, with the power to administer the oath or affirmation. However, this is subject to any agreement made by the parties. If there is no objection to a witness providing unsworn evidence, it may be considered waived.