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Section 25, Arbitration & Conciliation Act 1996: Default Of A Party

Section 25 (Default of a party) is under Chapter V (Conduct of arbitral proceedings) of the Part I (Arbitration) of the Arbitration and Conciliation Act, 1996.

The contents of the section  is reproduced hereunder:—

“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 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.”





Extra Notes for Readers

(1) Section 25 was amended by the Arbitration and Conciliation (Amendment) Act, 2015 (w.e.f. 23 Oct 2015), as follows:

i. In clause (b), at the end, after the words “allegations by the claimant”, the words “and shall have the discretion to treat the right of the respondent to file such statement of defence as having been forfeited” were newly inserted.






This page was last updated on 31st December, 2017.

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