Arbitration and Conciliation Act Section 25 — Default of a party

CHAPTER V — Conduct of arbitral proceedings

Civil

Summary

Unless the parties have agreed otherwise, this section sets out what happens when a party fails to act without showing sufficient cause.

Under clause (a), if the claimant fails to send their statement of claim as required under section 23(1), the arbitral tribunal must end the proceedings.

Under clause (b), if the respondent fails to send their statement of defence as required under section 23(1), the arbitral tribunal must continue the proceedings. This failure is not, by itself, treated as an admission of the claimant's allegations. The tribunal also has the discretion to treat the respondent's right to file the statement of defence as having been lost.

Under clause (c), if a party fails to appear at an oral hearing or fails to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the arbitral award based on the evidence that is before it.

Official Text

Unless otherwise agreed by the parties, where, without showing sufficient cause,—

(a) the claimant fails to communicate his statement of claim in accordance with sub-section (1) of section 23, the arbitral tribunal shall terminate the proceedings;

(b) the respondent fails to communicate his statement of defence in accordance with sub-section (1) of section 23, the arbitral tribunal shall continue the proceedings without treating that failure in itself as an admission of the allegations by the claimant 3[and shall have the discretion to treat the right of the respondent to file such statement of defence as having been forfeited].

(c) a party fails to appear at an oral hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the arbitral award on the evidence before it.