Sections 24-25 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 24 deals with hearings: whether they are oral or on documents, how they are scheduled and what each party must be told. Section 25 deals with default: what the tribunal does if the claimant does not file a claim, the respondent does not file a defence or a party fails to appear or produce evidence.
Unless otherwise agreed, the tribunal decides whether to hold oral hearings or proceed on documents, but it must hold oral hearings on a party's request at an appropriate stage unless the parties agreed that none be held. Hearings are to be held, as far as possible, on a day-to-day basis without adjournments unless sufficient cause is shown. Parties get sufficient advance notice and see everything the other side supplies. Under section 25, unless otherwise agreed and without sufficient cause, a claimant's failure to file a claim leads to termination, a respondent's failure to file a defence leads to the proceedings continuing, and a party's failure to appear or produce documents lets the tribunal proceed on the evidence before it. This is as per the India Code consolidated text consulted.
The place of these sections
Sections 24 and 25 sit in the middle of Chapter V of Part I, "Conduct of arbitral proceedings". They follow the pleadings in section 23 (see section 23) and come before experts and evidence in sections 26 and 27 (see sections 26 and 27). Section 18 sets the baseline that each party has a full opportunity to present its case; see sections 18 and 19.
We read both sections from the India Code consolidated text. Its footnotes show the second proviso to section 24(1) as inserted by Act 3 of 2016, s. 12, and the words in section 25(b) from "and shall have the discretion" to "forfeited" as inserted by s. 13 of the same Act, both with effect from 23-10-2015. One small point of punctuation in the official text: clause (b) of section 25 ends with a full stop although clause (c) follows it; nothing turns on it. If a hearing is coming up, arbitration support can help you prepare the schedule, the documents and the appearance.
Section 24(1): oral hearing or documents only
"Unless otherwise agreed by the parties, the arbitral tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other materials."
Two provisos qualify it:
- First proviso. The tribunal "shall hold oral hearings, at an appropriate stage of the proceedings, on a request by a party, unless the parties have agreed that no oral hearing shall be held."
- Second proviso (2015). The tribunal "shall, as far as possible, hold oral hearings for the presentation of evidence or for oral argument on day-to-day basis, and not grant any adjournments unless sufficient cause is made out, and may impose costs including exemplary costs on the party seeking adjournment without any sufficient cause."
So the starting position is the tribunal's choice, but a party's request for a hearing must be met unless the parties agreed otherwise. A party that wants a hearing should ask in writing at the right stage. The second proviso aims at continuity, and the tribunal's power to impose costs for an adjournment sought without sufficient cause links to section 31A; see section 31A.
Section 24(2) and (3): notice and communication
- (2) The parties shall be given sufficient advance notice of any hearing and of any meeting of the tribunal for inspection of documents, goods or other property. The text does not fix a number of days.
- (3) All statements, documents or other information supplied to, or applications made to, the tribunal by one party shall be communicated to the other party, and any expert report or evidentiary document on which the tribunal may rely in making its decision shall be communicated to the parties.
Sub-section (3) is the practical protection against surprise: nothing goes to the tribunal that the other side does not see, and the tribunal cannot rely on an expert report or document that the parties have not been given.
Section 25: default of a party
Section 25 opens "Unless otherwise agreed by the parties, where, without showing sufficient cause". The default consequences are:
| Default | What the tribunal does |
|---|---|
| (a) The claimant fails to communicate his statement of claim in accordance with section 23(1) | Terminates the proceedings |
| (b) The respondent fails to communicate his statement of defence in accordance with section 23(1) | Continues the proceedings without treating the failure in itself as an admission of the allegations by the claimant, and has discretion to treat the respondent's right to file the statement of defence as forfeited (words inserted in 2015) |
| (c) A party fails to appear at an oral hearing or to produce documentary evidence | May continue the proceedings and make the award on the evidence before it |
Points to note:
- Sufficient cause. Each limb applies where the failure is "without showing sufficient cause". A party with a genuine reason should explain it promptly in writing.
- Claimant default ends the proceedings. The word is "shall terminate", with no discretion in the text.
- Respondent default does not mean admission. The tribunal continues and the claimant must still prove the case; the text says so in terms: "without treating that failure in itself as an admission of the allegations by the claimant".
- Clause (c) is discretionary. The tribunal "may" continue and make an award on the evidence before it.
- Section 2(9) says section 25(a) is the exception to the rule that a reference to a claim also covers a counterclaim; see section 2.
A worked example
Trivedi Steel starts an arbitration against Qureshi Metals. The tribunal sets a date for the statement of defence. Qureshi does not file it and gives no reason. Under section 25(b), the tribunal continues without treating the silence as an admission, and it may treat Qureshi's right to file as forfeited. Trivedi must still lead evidence to prove its claim. At the hearing, Qureshi's representative does not appear and Qureshi does not produce the delivery records the tribunal asked for. Under section 25(c), the tribunal may continue and make the award on the evidence before it. Had Qureshi written beforehand showing a genuine reason, such as a bereavement affecting its only authorised signatory, it would have argued sufficient cause.
Practical steps
- Respond to every direction by the date given, or write for an extension and give the reason before the date.
- Ask for an oral hearing in writing if you want one, at an appropriate stage.
- Prepare for day-to-day hearings. The second proviso expects them, and unjustified adjournments can attract costs.
- Check notices. Section 24(2) requires sufficient advance notice; if you have not received it, say so at once. For deemed receipt, see sections 3 and 4.
- Never assume silence helps. Under clause (b), a defence not filed risks forfeiture of the right to file one.
- Ask for what the tribunal relies on. Section 24(3) entitles you to see expert reports and evidentiary documents the tribunal may rely on.
Need help with a hearing or a default notice?
Missing a date in an arbitration can change the outcome. Our arbitration support team can help you prepare for the hearing, respond to the tribunal's directions on time and, where something has been missed, set out the sufficient cause.
Key takeaways
- The tribunal decides between oral hearings and documents unless the parties agreed, but it must hold a hearing on a party's request unless the parties agreed that none be held.
- Hearings are to be day-to-day as far as possible, with adjournments only for sufficient cause and costs possible.
- Parties must get sufficient advance notice, and all material supplied to the tribunal must be shared.
- Default without sufficient cause: claimant, termination; respondent, continuation (right to defend may be treated as forfeited); other defaults, award on the evidence before the tribunal.
- Failure by the respondent to file a defence is not itself an admission.
Read next
- Section 23: statements of claim and defence
- Sections 26 and 27: expert and court assistance in taking evidence
- Sections 18 and 19: equal treatment and rules of procedure
- Arbitral tribunal procedure: sections 18 to 27
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.