Judiciary Exams Exam  >  Judiciary Exams Notes  >  Civil Law for Judiciary Exams  >  Conduct of Arbitral Proceeding: Section 25 of Arbitration and Conciliation Act

Conduct of Arbitral Proceeding: Section 25 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams PDF Download

Conduct of Arbitral Proceeding: Section 25 of Arbitration and Conciliation Act-Default of a party

Statement

Unless otherwise agreed by the parties, where, without showing sufficient cause
(a) The claimant fails to communicate his statement of claim in accordance with subsection (1) of section (2), the arbitral tribunal shall terminate the proceedings;
(b) The respondent fails to communicate his statement of defence in accordance with sub-section (1) of section 23, the arbitral tribunal shall continue the proceedings without treating that failure in itself as an admission of the allegations by the claimant;
(c) A party fails to appear at an oral hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the arbitral award on the evidence before it.

Arbitrator Power to Proceed

  • Where a party did not appear on the adjourned date despite a note by the arbitrator in the minutes of the hearing that if the party doesn't appear on the appointed date and time, the hearing would proceed ex parte and no separate notice is given, the ex parte award, in such a case, is legal as stated in the case of Nagasirinivasulu vs. GLADA Finance Ltd. (2009).
  • A party who, though repeatedly written to, doesn't appear before the arbitrator and allows the proceedings to go ex parte, cannot later say that he was not given the opportunity of being heard.
  • If a party shows sufficient cause for his non-appearance before the arbitrator, the court will set aside the award passed ex-parte as stated in the case of H.C. Whitehouse vs. Kahn Kahn and Co. (1914).
  • In the case of State of U.P. vs. Combined Chemicals (2011), the appellant sought adjournment on the ground that he had filed an appeal against the order of the trial court on the question of maintainability of the petition, the arbitrator granted adjournment but the appellant failed to obtain a stay order from the appellant court and continued to abstain from the arbitral proceedings. It was held that the arbitrator was justified in proceeding ex parte against such a party.
  • In the case of Mordue vs. Parmer (1871), it was held that an arbitrator having signed his award is functus officio and cannot alter his award or even the slightest error in it, even if such error has arisen from the mistake of a clerk in copying the draft. The proper course in such a case is to obtain an order to refer the award back to the arbitrator.

Question for Conduct of Arbitral Proceeding: Section 25 of Arbitration and Conciliation Act
Try yourself:
What happens if a claimant fails to communicate their statement of claim in an arbitration proceeding?
View Solution

Termination of Proceeding

  • Section 25(a) and 32(2)(c) are read conjointly, it would lead to the irresistible conclusion that the arbitrator can terminate the proceeding if the claimant fails to communicate his statement of claim.
  • In the case of Mohan Singh vs. International Authority of India (1997), the Supreme Court observed that the word "shall," though prima facie gives the impression of being of mandatory character, it requires to be considered in the light of the intention of the legislature by carefully attending to the scope of the statute, its nature and design, and the consequences that would flow from the construction thereof one way or the other.
  • The basic principle of the settlement of the dispute is that the arbitrator should know what is the claim of the claimant and what is the stand of the respondent and what are the factual and legal issues involved in the matter.
  • An arbitral tribunal can also recall the order of termination of the proceeding if done with due cause and found merit in the case.

Question for Conduct of Arbitral Proceeding: Section 25 of Arbitration and Conciliation Act
Try yourself:
According to the given information, when can an arbitrator terminate the proceeding?
View Solution

The document Conduct of Arbitral Proceeding: Section 25 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 25 of Arbitration and Conciliation Act - Civil Law for Judiciary Exams

1. What is the significance of Section 25 of the Arbitration and Conciliation Act in relation to the default of a party in an arbitral proceeding?
Ans. Section 25 of the Arbitration and Conciliation Act deals with the default of a party in an arbitral proceeding. It provides for the consequences of a party failing to attend a hearing or produce evidence. The arbitral tribunal has the discretion to continue with the proceedings and make the award based on the evidence before them.
2. Can a party be penalized for defaulting in an arbitral proceeding under Section 25 of the Act?
Ans. Yes, under Section 25 of the Act, if a party defaults in attending a hearing or producing evidence without sufficient cause, the arbitral tribunal has the power to continue with the proceedings and make the award based on the evidence before them. This can be seen as a penalty for the defaulting party.
3. What are the options available to a party who has defaulted in an arbitral proceeding as per Section 25 of the Act?
Ans. If a party has defaulted in attending a hearing or producing evidence in an arbitral proceeding, they can seek to explain their absence and provide sufficient cause for their default. The arbitral tribunal will then decide whether to continue with the proceedings or take any other appropriate action.
4. Can a party challenge the decision of the arbitral tribunal in continuing with the proceedings despite their default under Section 25 of the Act?
Ans. A party may have the option to challenge the decision of the arbitral tribunal in continuing with the proceedings despite their default. They can raise objections and seek appropriate remedies through the court if they believe that their rights have been violated or if there has been any procedural irregularity.
5. How does Section 25 of the Act ensure the fair conduct of arbitral proceedings in case of a party's default?
Ans. Section 25 of the Act ensures the fair conduct of arbitral proceedings by allowing the arbitral tribunal to make decisions based on the evidence before them in case of a party's default. This ensures that the proceedings are not unduly delayed or prejudiced due to the actions or inactions of a defaulting party.
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

video lectures

,

study material

,

Summary

,

Semester Notes

,

MCQs

,

practice quizzes

,

Conduct of Arbitral Proceeding: Section 25 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams

,

Sample Paper

,

Free

,

Previous Year Questions with Solutions

,

Viva Questions

,

Objective type Questions

,

Extra Questions

,

Conduct of Arbitral Proceeding: Section 25 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams

,

shortcuts and tricks

,

past year papers

,

Conduct of Arbitral Proceeding: Section 25 of Arbitration and Conciliation Act | Civil Law for Judiciary Exams

,

mock tests for examination

,

pdf

,

ppt

,

Exam

,

Important questions

;