• III. Arbitration under Act of 1996 – II
  • Arbitration under Arbitration and Conciliation Act, 1996 :
  • 3.1 Conduct of Arbitral Proceedings
  • 3.1.1 Administrative Assistance
  • 3.1.2 Equal treatment of the parties
  • 3.1.3 Determining the rules of procedures
  • 3.1.4 Place of arbitration
  • 3.1.5 Commencement of proceedings
  • 3.1.6 Language
  • 3.1.7 Pleadings
  • 3.1.8 Hearings
  • 3.1.9 Default of a party
  • 3.1.10 Expert appointment
  • 3.1.11Court assistance
  • 3.2 Arbitral Award:
  • 3.2.1 Definition, requirements and ingredients
  • 3.2.2 Applicability of Rules
  • 3.2.3 Decision making by panel of Arbitrators
  • 3.2.4 Form and contents of Arbitral Award
  • 3.2.5 Adherence to Allied laws for validity of Arbitral Award
  • Indian Stamp Act
  • Registration Act
  • 3.3 Other provisions on Arbitral Award
  • 3.3.1 Time limit for Arbitral Award
  • 3.3.2 Fast track procedure
  • 3.3.3 Settlement

 

3.1: Conduct of Arbitral Proceedings

The “Plain English” Intro

Arbitration is designed to be flexible. Unlike a regular court where you must follow every line of the CPC, in Arbitration, the parties and the Arbitrator decide how the “game” will be played—where to meet, what language to speak, and how to present evidence.

Day-to-Day Analogy

Litigation is like a government-run board exam (strict center, fixed time, fixed language). Arbitration is like a private certification exam (you choose the date, the venue—maybe a hotel conference room—and the proctor). As long as it’s fair to both sides, the “rules” are up to you.

The Legal Backbone (Table)

Section	Concept	What it means in Simple Terms
Section 18	Equal Treatment	The most important rule: Both sides must have an equal chance to present their case.
Section 19	Procedural Freedom	The Tribunal is NOT bound by the CPC or the Evidence Act.
Section 20	Place of Arbitration	Parties choose the “Seat” (legal home) and “Venue” (physical meeting spot).
Section 21	Commencement	The case officially starts the day the respondent receives the request for arbitration.
Section 25	Default of a Party	If the Plaintiff (Claimant) goes missing, the case is dropped. If the Defendant (Respondent) goes missing, the case continues without them (Ex-parte).

The “Checklist” (The Procedural Flow)

• Pleadings: Statement of Claim (Plaintiff) and Statement of Defence (Defendant).
• Hearings: Can be oral arguments or just based on “documents only” (if parties agree).
• Experts: The Tribunal can appoint its own expert (e.g., a civil engineer to inspect a bridge) to help them understand technical facts.
• Court Assistance: If a witness refuses to show up, the Tribunal can ask a Civil Court to issue a summons to force them (Section 27).

3.2: The Arbitral Award

The “Plain English” Intro

The Arbitral Award is the final decision. For it to be valid, it must be in writing, signed, and give the “reasons” for the decision (unless the parties agree reasons aren’t needed).

The Legal Backbone (Table)

Requirement	Detail	Why it matters
Writing & Signature	Must be signed by the majority of the tribunal.	Proof of the decision.
Reasoned Award	Must explain WHY the arbitrator decided this way.	To prevent arbitrary or “guessed” judgments.
Stamp Duty	Must be stamped as per the Indian Stamp Act.	An unstamped award cannot be enforced in court.
Registration	Required under the Registration Act if it transfers property.	To make the transfer of land public record.

3.3: Time Limits and Settlement

The “Plain English” Intro

Arbitration is meant to be fast. The law now sets a “timer” on the Arbitrator. However, if the parties shake hands and settle in the middle of the case, the Arbitrator can record that as a “Settlement Award.”

Comparison Table: Regular vs. Fast Track

Feature	Regular Procedure	Fast Track (Section 29B)
Timeline	12 months (extendable by 6).	6 months (strictly).
Oral Hearing	Generally allowed.	No oral hearing (unless necessary).
Evidence	Written + Oral.	Based on written pleadings only.

The “Checklist” (Termination & Settlement)

• Section 30 (Settlement): If parties settle, the Arbitrator gives an “Award on Agreed Terms.” It has the same power as any other award.
• Section 32 (Termination): The proceedings end when the final award is given or if the parties agree to stop.

Landmark Case Laws (The Story Method)

1. Bharat Aluminium Co. (BALCO) v. Kaiser Aluminium

• The Conflict: Does Indian law apply to an arbitration happening in London?
• The Verdict: The Court distinguished between the “Seat” (legal jurisdiction) and “Venue” (physical location). If the “Seat” is outside India, Indian courts won’t interfere in the conduct of the case.

2. Union of India v. Tecco Trichy Engineers

• The Conflict: When does the “Time Limit” for challenging an award start?
• The Verdict: The time starts only when a signed copy of the award is actually delivered to the party. Delivery is not just “passing” the award; it’s “receiving” it.

Visual Flowchart Description

The Life Cycle of an Arbitral Proceeding:

1. Notice (Sec 21): Arbitration is triggered.
2. Pleadings (Sec 23): Claim and Defence are exchanged.
3. Hearings (Sec 24): Oral or Document-based review.
4. Closure: Arbitrator declares hearings closed.
5. Award (Sec 31): Reasoned, signed, and stamped decision is delivered.
6. Correction (Sec 33): Parties have 30 days to ask for “typo corrections.”

Exam “Golden Key”

Latin Maxim: Audi Alteram Partem

(Definition: “Hear the other side.” Use this to explain Section 18—if an Arbitrator doesn’t give a party a fair chance to speak, the entire Award can be thrown out by a Court.)

Concluding Sentence: “An Arbitral Award is the ‘Finishing Line’ of the race; for it to be legally valid, it must be drafted with the precision of a Judge and the clarity of a Storyteller.”