Arbitral Tribunal Procedure: Sections 18 to 27 of the Arbitration and Conciliation Act, 1996

Arbitral Tribunal Procedure explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Sections 18 to 27 form Chapter V of Part I, headed "Conduct of arbitral proceedings". They cover how the tribunal runs the case from the day the arbitration commences to the taking of evidence. This overview takes each section in a few sentences, as per the India Code consolidated text consulted, and links the section-wise article for each; later amendments should be checked. If you are about to start or defend an arbitration, our legal dispute resolution team can plan the steps with you.

The tribunal must treat the parties with equality (section 18) and is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872 (section 19(1)). The parties may agree the procedure, place and language; where they do not, the tribunal decides (sections 19, 20, 22). The statement of claim and defence shall be completed within six months from the date the arbitrators received written notice of their appointment (section 23(4)), and a claimant who does not file a statement of claim without sufficient cause faces termination of the proceedings (section 25(a)).

Chapter V at a glance

Sections 18 and 19: equality and procedure

Section 18 is one sentence: the parties shall be treated with equality and each party shall be given a full opportunity to present its case. The text consulted prints the last words as "present this case".

Section 19(1) says the arbitral tribunal shall not be bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. Subject to Part I, the parties are at liberty to agree on the procedure (section 19(2)); failing agreement the tribunal may conduct the proceedings in the manner it considers appropriate (section 19(3)), which includes the power to determine the admissibility, relevance, materiality and weight of any evidence (section 19(4)). See sections 18 and 19.

Sections 20 and 22: place and language

Under section 20 the parties may agree on the place of arbitration; failing agreement the tribunal determines it having regard to the circumstances of the case, including the convenience of the parties. Section 20(3) lets the tribunal, unless otherwise agreed, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property.

Section 22 works the same way for language: agreement of the parties first, then the tribunal. The choice applies to written statements, hearings and the award unless otherwise specified, and the tribunal may order a translation of documentary evidence. See sections 20 and 22.

Section 21: when the arbitration commences

Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent. Section 43(2) uses the same date for the Limitation Act, 1963, and section 9(2) requires proceedings to be commenced within ninety days of an interim order of the Court passed before commencement. See section 21.

Section 23: statements of claim and defence

Within the time agreed by the parties or fixed by the tribunal, the claimant states the facts supporting the claim, the points at issue and the relief or remedy sought, and the respondent states the defence (section 23(1)). Documents may be filed with the statements or referred to (section 23(2)). The respondent may also submit a counterclaim or plead a set-off, which the tribunal adjudicates if it falls within the scope of the arbitration agreement (section 23(2A), shown as inserted by Act 3 of 2016, s. 11, with effect from 23-10-2015). Either party may amend or supplement unless the tribunal considers it inappropriate having regard to the delay (section 23(3)).

Section 23(4), shown as inserted by Act 33 of 2019, s. 5, with effect from 30-8-2019, requires the statement of claim and defence to be completed within six months from the date the arbitrator or all the arbitrators received notice, in writing, of their appointment. The twelve months for the award in section 29A(1) run from that completion. See section 23.

Sections 24 and 25: hearings and default

Unless otherwise agreed, the tribunal decides whether to hold oral hearings or to proceed on documents and other materials; it shall hold oral hearings at an appropriate stage on a request by a party, unless the parties have agreed that no oral hearing shall be held (section 24(1) and first proviso). The second proviso, shown as inserted by Act 3 of 2016, s. 12, says the tribunal shall, as far as possible, hold oral hearings on a day-to-day basis, not grant adjournments unless sufficient cause is made out, and may impose costs including exemplary costs on a party seeking adjournment without sufficient cause. Everything one party supplies to the tribunal is communicated to the other (section 24(3)).

Section 25 applies where a party defaults without showing sufficient cause, unless otherwise agreed:

• the claimant does not communicate the statement of claim: the tribunal shall terminate the proceedings (clause (a));
• the respondent does not communicate the statement of defence: the tribunal continues without treating that failure in itself as an admission, and has the discretion to treat the right to file the statement of defence as forfeited (clause (b));
• a party does not appear at an oral hearing or produce documentary evidence: the tribunal may continue and make the award on the evidence before it (clause (c)).

See sections 24 and 25.

Sections 26 and 27: experts and court assistance

Under section 26 the tribunal may, unless otherwise agreed, appoint one or more experts to report on specific issues and require a party to give the expert relevant information or access to documents, goods or property. If a party so requests or the tribunal considers it necessary, the expert takes part in an oral hearing where the parties may put questions and present expert witnesses.

Under section 27 the tribunal, or a party with the tribunal's approval, may apply to the Court for assistance in taking evidence. The application specifies the names and addresses of the parties and the arbitrators, the general nature of the claim and the relief sought, and the evidence to be obtained. The Court may order that the evidence be provided directly to the tribunal and may issue the same processes to witnesses as in suits tried before it. Persons who do not attend, or who are in contempt of the tribunal, are subject to the like disadvantages, penalties and punishments by order of the Court on the representation of the tribunal (section 27(5)). See sections 26 and 27.

Printing points in the text

• The contents list at the front of the text marks section 26 as omitted, but the section is printed in full in the body with no omission footnote.
• Section 18 prints "present this case"; section 20(3) prints "anyplace" as one word.
• Clause (b) of section 25 ends with a full stop before clause (c).

An example

Chambal Agro appoints a sole arbitrator with Pennar Mills by agreement, and the arbitrator receives written notice of appointment on a given date. Section 23(4) counts six months from that date for completing the statement of claim and defence. If Chambal, as claimant, does not communicate its statement of claim and shows no sufficient cause, section 25(a) requires the tribunal to terminate the proceedings.

Common mistakes

• Assuming the rules of a civil suit apply; section 19(1) says the tribunal is not bound by the Code or the Evidence Act.
• Treating the place of a hearing as the place of arbitration; section 20(3) lets the tribunal meet elsewhere.
• Seeking adjournments without cause; the second proviso to section 24(1) allows costs, including exemplary costs.

Need help running an arbitration?

Procedure decides how long and how costly an arbitration becomes. Our legal dispute resolution service prepares the request for arbitration, the statement of claim or defence and the documents that go with them, and keeps the six-month and twelve-month periods in view.

Key takeaways

• Equality of treatment is a duty on the tribunal (section 18).
• The parties may agree procedure, place and language; the tribunal decides where they have not.
• Arbitration commences when the respondent receives the request, unless otherwise agreed (section 21).
• Pleadings are to be completed within six months (section 23(4)).
• Default has stated consequences under section 25.

Read next

• Section 29A: time limit for the arbitral award
• Section 17: interim measures ordered by the arbitral tribunal
• Sections 3 and 4: receipt of written communications and waiver
• The arbitral award: making and enforcement

Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.