Section 23 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.
Section 23 sets out the pleadings in an arbitration: what the claimant must state, how the respondent answers, how a counterclaim or set-off comes in, when pleadings may be amended and the six-month period within which they must be completed.
Within the time agreed by the parties or fixed by the tribunal, the claimant states the facts, the points at issue and the relief sought, and the respondent states his defence. The respondent may also submit a counterclaim or plead a set-off if it falls within the scope of the arbitration agreement. Unless otherwise agreed, a party may amend or supplement his claim or defence unless the tribunal considers it inappropriate having regard to the delay. The statement of claim and defence must be completed within six months from the date the arbitrator, or all the arbitrators, received written notice of appointment. This is as per the India Code consolidated text consulted.
Where pleadings fit
Pleadings come after the proceedings commence (section 21; see section 21) and the tribunal is in place, and before the hearings in section 24. Section 25 deals with what happens if a party defaults on the statement; see sections 24 and 25. The completion of pleadings is also the starting point for the award period in section 29A(1); see section 29A.
In the India Code consolidated text, section 23 stands in Chapter V of Part I, "Conduct of arbitral proceedings". The footnotes show sub-section (2A) as inserted by Act 3 of 2016, s. 11, with effect from 23-10-2015, and sub-section (4) as inserted by Act 33 of 2019, s. 5, with effect from 30-8-2019. If you are preparing a claim or a defence, arbitration support can help you draft the statement and plan the timetable.
Sub-section (1): claim and defence
"Within the period of time agreed upon by the parties or determined by the arbitral tribunal, the claimant shall state the facts supporting his claim, the points at issue and the relief or remedy sought, and the respondent shall state his defence in respect of these particulars, unless the parties have otherwise agreed as to the required elements of those statements."
| Party | What the statement must contain |
|---|---|
| Claimant | The facts supporting the claim; the points at issue; the relief or remedy sought |
| Respondent | His defence in respect of those particulars |
Two features are worth noting. First, the period is the one agreed by the parties or determined by the tribunal, and sub-section (4) adds an outer limit. Second, the parties may agree on different required elements, for example a particular format in institutional rules. Section 2(8) says an agreement of the parties includes any arbitration rules referred to in it; see section 2.
Sub-section (2): documents
"The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit." So a party may attach the documents or simply list the ones it will rely on later. Section 24(3) requires that what one party supplies to the tribunal is communicated to the other.
Sub-section (2A): counterclaim and set-off
"The respondent, in support of his case, may also submit a counterclaim or plead a set-off, which shall be adjudicated upon by the arbitral tribunal, if such counterclaim or set-off falls within the scope of the arbitration agreement."
- A counterclaim is the respondent's own claim against the claimant.
- A set-off is a plea that an amount owed to the respondent should be deducted from the claim.
- The condition is that it falls within the scope of the arbitration agreement. A wide clause covers more; a narrow clause may leave the counterclaim outside the tribunal's reach.
Section 2(9) adds that where Part I, other than section 25(a) or section 32(2)(a), refers to a claim, it also applies to a counterclaim, and a reference to a defence also covers a defence to the counterclaim; see section 2.
Sub-section (3): amendments
"Unless otherwise agreed by the parties, either party may amend or supplement his claim or defence during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow the amendment or supplement having regard to the delay in making it."
The right is general but is limited by delay. A party who wants to add a head of claim should do so early and explain why it was not included before. The tribunal decides whether the delay makes the amendment inappropriate.
Sub-section (4): six months
"The statement of claim and defence under this section shall be completed within a period of six months from the date the arbitrator or all the arbitrators, as the case may be, received notice, in writing of their appointment."
The footnote shows this as inserted by Act 33 of 2019, s. 5, with effect from 30-8-2019, as printed. Points to note:
- The period is six months, as printed.
- It runs from the date the arbitrator, or all the arbitrators, received written notice of their appointment. It does not run from the date of the request under section 21.
- It covers the statement of claim and defence together, which includes any counterclaim or set-off under sub-section (2A) as part of the case.
- The text does not say what happens if the six months pass, apart from the effect on the award period under section 29A, which runs from completion of pleadings.
A worked example
Desai Garments and Pandey Fabrics begin an arbitration about unpaid fabric invoices. The tribunal of three arbitrators is constituted, and the last arbitrator receives written notice of appointment on 1 July. Under sub-section (4), the statements of claim and defence must be completed within six months of that date. The tribunal fixes four weeks for the claim and four weeks for the defence. In its defence, Pandey also submits a counterclaim for defective goods, and under sub-section (2A) the tribunal adjudicates it if the clause covers disputes about quality. In September, Desai asks to add a claim for interest; under sub-section (3), the tribunal considers the delay and decides whether to allow it.
Practical steps
- Diarise the six months from the date of written notice of appointment to the last arbitrator.
- Put the facts, points at issue and relief in your claim as sub-section (1) lists them.
- Plead any counterclaim or set-off in the defence, so that it is part of the pleadings from the start.
- Attach documents or list them, as sub-section (2) allows.
- Ask early for any amendment, and give a reason for any delay.
- Raise a jurisdiction plea not later than the statement of defence; see section 16. For court pleadings, our guide on written statements is a separate subject, since the tribunal is not bound by the Code under section 19(1).
Need help with pleadings in an arbitration?
A well-structured statement of claim or defence sets the course of the whole case. Our arbitration support team can help you draft the statement, add a counterclaim or set-off where the clause allows and keep within the six-month period.
Key takeaways
- The claimant states facts, points at issue and relief; the respondent states his defence.
- A counterclaim or set-off may be submitted if it falls within the scope of the arbitration agreement.
- Either party may amend or supplement, unless the tribunal considers it inappropriate having regard to delay.
- The statement of claim and defence must be completed within six months from written notice of appointment, as the 2019 insertion prints it (Act 33 of 2019, s. 5, with effect from 30-8-2019).
- The six months run from the appointment notice, not from the request for arbitration.
Read next
- Section 21: commencement of arbitral proceedings
- Sections 24 and 25: hearings, written proceedings and default
- Section 29A: time limit for the award
- Section 16: competence of the tribunal to rule on its jurisdiction
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.