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Sections 20 and 22 of the Arbitration and Conciliation Act, 1996: place of arbitration and language

The parties may agree on the place of arbitration; failing agreement, the tribunal determines it having regard to the circumstances, including the convenience of the parties...

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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 20 deals with where the arbitration takes place and where the tribunal may meet. Section 22 deals with the language of the proceedings and translations. Both start with the parties' agreement and give the tribunal the decision if the parties have not agreed.

Why place and language matter

The place of arbitration is more than a venue. Section 2(2) says Part I applies where the place of arbitration is in India; see our article on section 2. Section 31(4) says the award states the place and is deemed to have been made there. So a clause that names the place carries real consequences. For a view of how seat and venue are discussed alongside the Mediation Act, see our guide on alternate dispute resolution under the Mediation and Arbitration Acts.

In the India Code consolidated text, sections 20 and 22 stand in Chapter V of Part I, "Conduct of arbitral proceedings", on either side of section 21. Section 20(3) reads "for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property". Neither section 20 nor section 22 has a footnote of amendment in the text. If your clause on place or language is unclear, arbitration support can help you tidy it before a dispute arises.

Section 20(1): the parties agree on the place

The parties are at liberty to agree on the place of arbitration. In a contract, that is the clause that says "the place of arbitration shall be ". Section 2(6) adds that this liberty includes the right to authorise any person, including an institution, to determine the place.

Section 20(2): if there is no agreement

"Failing any agreement referred to in sub-section (1), the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case, including the convenience of the parties."

The test has two parts: the circumstances of the case, and the convenience of the parties. The text does not list the circumstances. The convenience of the parties is a factor, not the only factor.

Section 20(3): meeting elsewhere

"Notwithstanding sub-section (1) or sub-section (2), the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate" for three purposes:

  1. consultation among its members;
  2. hearing witnesses, experts or the parties; or
  3. inspection of documents, goods or other property.

So the place stays as fixed, but the tribunal can sit elsewhere for these purposes unless the parties agreed otherwise. For example, with the place of arbitration in Delhi, a tribunal may inspect machinery at a factory in another State without changing the place of arbitration. Section 31(4) will still record the place determined under section 20.

Section 22: language

Sub-section (1)

The parties are at liberty to agree upon the language or languages to be used in the arbitral proceedings.

Sub-section (2)

"Failing any agreement referred to in sub-section (1), the arbitral tribunal shall determine the language or languages to be used in the arbitral proceedings."

Sub-section (3)

"The agreement or determination, unless otherwise specified, shall apply to any written statement by a party, any hearing and any arbitral award, decision or other communication by the arbitral tribunal."

Sub-section (4)

"The arbitral tribunal may order that any documentary evidence shall be accompanied by a translation into the language or languages agreed upon by the parties or determined by the arbitral tribunal."

QuestionSection 22 answer
Who chooses the language?The parties; failing agreement, the tribunal
Does it cover written statements?Yes, unless otherwise specified
Does it cover hearings?Yes, unless otherwise specified
Does it cover the award and tribunal communications?Yes, unless otherwise specified
What about documents in another language?The tribunal may order a translation into the agreed or determined language

The text does not say who pays for translations. Costs are dealt with in section 31A; see section 31A, whose explanation of costs lists "any other expenses incurred in connection with the arbitral or Court proceedings and the arbitral award".

How place and language fit with the rest of Part I

  • Commencement. Section 21 starts proceedings from the date the request is received; place and language are separate questions; see section 21.
  • Procedure. Section 19 lets the parties set procedure and the tribunal fill gaps; see sections 18 and 19.
  • The award. Section 31(4) says it states its date and the place of arbitration as determined under section 20, and is deemed to have been made at that place; see section 31.
  • International cases. Section 2(1)(f) defines international commercial arbitration; the text consulted gives no separate rule on place or language for it, and we add none.

A worked example

Naidu Machinery, a Chennai company, signs a supply contract with a Pune buyer, Kale Industries. The arbitration clause says "arbitration in Mumbai" and nothing about language. Under section 20(1), the place is Mumbai. The documents are partly in Tamil and Marathi. The tribunal determines the language under section 22(2), say English, and under section 22(4) may order translations of the Tamil and Marathi documents. To examine machinery at Chennai, the tribunal may meet there under section 20(3) without changing the place of arbitration.

Drafting points

  • Name the place of arbitration in one clear sentence.
  • Name the language of the proceedings and of the award.
  • Say whether hearings may be held elsewhere or by consent only; remember section 20(3) is "unless otherwise agreed".
  • State how translations are to be handled and who bears the cost; the Act leaves that to the agreement and to section 31A.
  • See our arbitration clause draft for commercial contracts for a model clause.

Need help with the place and language clause?

Place and language shape which law applies, how hearings run and what the award records. Our arbitration support team can review your clause and suggest wording that fits sections 20 and 22.

Key takeaways

  • The parties may agree on the place of arbitration; otherwise the tribunal decides, having regard to the circumstances and the convenience of the parties.
  • The tribunal may meet at any place it considers appropriate for consultation, hearing or inspection, unless otherwise agreed.
  • The parties may agree on the language; otherwise the tribunal decides.
  • The agreed or determined language covers written statements, hearings and the award, unless otherwise specified.
  • The tribunal may order translations of documentary 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 20 and 22

  • 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.

Who decides the place of arbitration?

The parties by agreement; failing agreement, the arbitral tribunal under section 20(2).

Can the tribunal meet somewhere other than the place of arbitration?

Yes, unless the parties have agreed otherwise, for consultation, for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property.

Read the clause that says what happens when things go wrong; it is the one you will use.

— TaxClue Legal Desk

Sections 20 and 22: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

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

The parties by agreement; failing agreement, the arbitral tribunal under section 20(2).

Yes, unless the parties have agreed otherwise, for consultation, for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property.

The parties may agree; failing agreement, the tribunal determines it.

Under section 22(3), the agreement or determination applies to the award, unless otherwise specified.

Yes. Section 22(4) lets it order that documentary evidence be accompanied by a translation.

Section 31(4) says the award states its date and the place of arbitration as determined in accordance with section 20.