Section 19
Determination of rules of procedure:
(1) The arbitral tribunal shall not be bound by the Code
of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872).
(2) Subject to this Part, the parties are free to agree on the procedure to be followed by the arbitral
tribunal in conducting its proceedings.
(3) Failing any agreement referred to in sub-section (2), the arbitral tribunal may, subject to this Part,
conduct the proceedings in the manner it considers appropriate.
(4) The power of the arbitral tribunal under sub-section (3) includes the power to determine the
admissibility, relevance, materiality and weight of any evidence.
Section 19 of the Act is a pivotal provision that underscores party autonomy and procedural flexibility in arbitral proceedings in India. It stipulates that arbitral tribunals are not strictly bound by the Code of Civil Procedure, 1908 (CPC) or the Indian Evidence Act, 1872. Instead, subject to any agreement between the parties and the overarching principles laid down in the Act, the tribunal has the freedom to determine its own procedural rules.
Key feature of the Section 19:-
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Autonomy of Parties
The bedrock of Section 19 is the principle that parties to an arbitration agreement have the discretion to mutually decide the procedure to be adopted during the arbitral proceedings. This principle is in keeping with international best practices, recognizing that arbitration should be a consensual mechanism aimed at resolving disputes efficiently and cost-effectively.
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Tribunal’s Flexibility
Where parties have not agreed on specific procedural rules, the arbitral tribunal can lay down its own procedure for conducting the arbitration. This flexibility allows the tribunal to devise a process best suited to the nature of the dispute, the factual matrix, and the interests of the parties.
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Exclusion of Rigid Judicial Procedures
Section 19 explicitly dispenses with the mandatory application of the CPC and the Indian Evidence Act. This relaxation is intended to simplify and expedite dispute resolution. However, it does not imply a disregard for the principles of natural justice or fairness. Arbitral tribunals are obliged to treat both parties impartially and grant each a fair opportunity to present their arguments.
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Balancing Speed and Fairness
By allowing arbitrators to determine procedural rules, Section 19 promotes swift resolution of disputes. Nonetheless, the core values of justice, such as proper notice, opportunity to respond, and impartial decision-making, remain intact. This balance of efficiency and fairness is crucial to maintaining the credibility of the arbitral process.
Section 19 of the Arbitration and Conciliation Act, 1996 stands as a testament to the legislative intent of promoting party autonomy and procedural flexibility in arbitration. By allowing parties and tribunals to fashion dispute resolution protocols unencumbered by strict judicial formalities, Section 19 paves the way for a more efficient and tailor-made arbitration process. However, while enjoying such flexibility, arbitrators must safeguard the interests of justice by adhering to the principles of natural justice and ensuring both parties are heard fairly. Consequently, Section 19 remains a cornerstone of arbitration jurisprudence in India, driving the country’s alignment with global practices in alternative dispute resolution.
Disclaimer: This blog is for informational purposes only and does not constitute any legal advice. Readers should seek expert legal counsel before taking any action based on the content.