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Sections 18-19 of the Arbitration and Conciliation Act, 1996: equal treatment of parties and rules of procedure

Under section 18, the parties shall be treated with equality and each party shall be given a full opportunity to present its case (the official text prints "this case"). Under...

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Arbitration
Published
October 2, 2026
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Oct 3, 2026
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Last updated: October 2026Applies to: FY 2026-27 (AY 2027-28)Verified against: Government sources

Section 18 is a single sentence that every arbitration has to meet: the parties are treated with equality and each gets a full opportunity to present the case. Section 19 then says how the procedure is set: the tribunal is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872, the parties may agree on procedure, and failing that the tribunal decides.

Why these sections come first in the conduct of proceedings

Sections 18 to 27 form Chapter V of Part I, which the text heads "Conduct of arbitral proceedings". Section 18 sets the baseline, and section 19 sets the freedom to design the procedure within that baseline. Later sections cover place, language, commencement, claims, hearings, default, experts and evidence. Our short note arbitral tribunal procedure under sections 18 to 27 gives a quick overview, and this article takes sections 18 and 19 in detail.

We read both sections from the India Code consolidated text. Neither section has a footnote of amendment in it. If you are setting the procedure for a pending arbitration, arbitration support can help you prepare a procedure note for the tribunal.

Section 18: equal treatment and a full opportunity

The section reads, as the official text prints it: "The parties shall be treated with equality and each party shall be given a full opportunity to present this case." The last words, "this case", read like "his case", that is, the party's own case; we quote the sentence as printed and flag the point without correcting it.

It has two limbs.

LimbMeaning
EqualityThe tribunal treats both sides alike: the same chance to file, to be heard and to respond
Full opportunity to present the caseNo party is shut out from putting its case, whether by documents, evidence or argument

The section has no "unless otherwise agreed" qualifier, so, unlike many other sections, it is not worded as a default that the parties may switch off. Section 19(2) itself says the parties' freedom to agree on procedure is "subject to this Part", which includes section 18. In practice, an agreed procedure should be consistent with equal treatment.

What does it look like in practice? Both sides get a fair timetable for filing, notice of hearings, access to what the other side has filed, and a chance to answer. Section 24(3) in the same group requires that statements, documents or other information supplied to the tribunal by one party be communicated to the other party; see sections 24 and 25.

Section 19(1): not bound by the Code or the Evidence Act

"The arbitral tribunal shall not be bound by the Code of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872)."

This does not mean anything goes. It means the tribunal does not have to follow the technical rules of a civil court. The tribunal must still meet section 18, and the other sections of Part I still apply. For a party used to civil litigation, it means that the pleadings and evidence may be handled more flexibly, but the process is still structured by the Act. For a contrast with court procedure, see our comparison of arbitration, litigation and mediation.

Section 19(2): the parties may agree on the procedure

Subject to Part I, the parties are at liberty to agree on the procedure the arbitral tribunal follows in conducting its proceedings. This is where the arbitration clause or the rules of an institution can fix steps and timetables. Section 2(8) says that where Part I refers to an agreement of the parties, that agreement includes any arbitration rules referred to in it; see section 2. So a clause that adopts a set of institutional rules brings in the procedure in those rules.

Section 2(6) adds that the liberty to determine an issue includes the right to authorise any person, including an institution, to determine it.

Practical consequence: put procedure into the contract only where you are sure it is workable. A very detailed procedural clause, such as fixed page limits or hearing days, can later bind you.

Section 19(3): the tribunal fills the gap

"Failing any agreement referred to in sub-section (2), the arbitral tribunal may, subject to this Part, conduct the proceedings in the manner it considers appropriate."

The tribunal's discretion is wide but is "subject to this Part". Equal treatment under section 18, the time rules in sections 23 and 29A and the other sections still bind it; see section 23 and section 29A.

Section 19(4): the evidence power

"The power of the arbitral tribunal under sub-section (3) includes the power to determine the admissibility, relevance, materiality and weight of any evidence."

So where the parties have not agreed otherwise, the tribunal decides what evidence it accepts and how much it counts for. Section 26 and section 27 deal with experts and court assistance in taking evidence; see sections 26 and 27.

Order of authority in one table

StepSourceWhat governs
1Part I, including section 18Equal treatment and a full opportunity: always applies
2Section 19(2)The procedure agreed by the parties, including any rules their agreement refers to
3Section 19(3)If nothing is agreed, the procedure the tribunal considers appropriate
4Section 19(4)Within step 3, the tribunal decides admissibility, relevance, materiality and weight of evidence
Not applicableSection 19(1)The Code of Civil Procedure, 1908 and the Indian Evidence Act, 1872 do not bind the tribunal

A worked example

Pillai Exports and Kohli Freight have an arbitration clause that adopts no institutional rules and says nothing on procedure. At the first sitting the tribunal circulates a timetable: claim in four weeks, defence in four weeks, a hearing date and a short written submission. Pillai asks that the formal rules of evidence in the Indian Evidence Act be applied to the shipping records. Under section 19(1) the tribunal is not bound by that Act, and under section 19(4) it decides the admissibility and weight of the records. Kohli asks for the timetable to allow it the same time as Pillai to respond, which is what section 18 requires of equal treatment.

Practical steps for parties

  • Decide whether your clause should refer to institutional rules or leave procedure to the tribunal.
  • Raise any procedural concern at the first sitting and record it in writing; section 4 can treat silence after knowledge as a waiver of an objection; see sections 3 and 4.
  • Ask for the same opportunities that the other side has.
  • Prepare evidence on the basis that the tribunal, not a rule book, will judge its weight.

Need help with procedure in an arbitration?

Setting a sensible procedure early saves time and cost later. Our arbitration support team can review your clause and any rules it adopts, and help you prepare a procedural timetable for the tribunal.

Key takeaways

  • Section 18: equality of treatment and a full opportunity to present the case apply to every party.
  • Section 19(1): the tribunal is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872.
  • Section 19(2): the parties may agree on procedure, subject to Part I.
  • Section 19(3): failing agreement, the tribunal conducts the proceedings as it considers appropriate, subject to Part I.
  • Section 19(4): the tribunal decides admissibility, relevance, materiality and weight of evidence.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Sections 18-19

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Does section 18 apply even if the parties agree on a procedure?

The parties' freedom under section 19(2) is "subject to this Part", and section 18 is part of it, so an agreed procedure should respect equal treatment and a full opportunity.

Is the tribunal bound by the Code of Civil Procedure?

No. Section 19(1) says the tribunal is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872.

Limitation runs quietly — know the last date before you decide to wait.

— TaxClue Legal Desk

Sections 18-19: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

The parties' freedom under section 19(2) is "subject to this Part", and section 18 is part of it, so an agreed procedure should respect equal treatment and a full opportunity.

No. Section 19(1) says the tribunal is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872.

The tribunal, in the manner it considers appropriate, subject to Part I.

Section 19(4) says the tribunal's power includes determining admissibility, relevance, materiality and weight of any evidence.

Section 2(8) says an agreement of the parties includes any arbitration rules referred to in it, so referring to rules brings them in.

No footnote of amendment is shown for sections 18 and 19 in the text consulted.