Section 24
Hearing and written proceedings
(1) 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:
Provided that the arbitral 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:
[Provided further that the arbitral 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.]
(2) The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitral tribunal for the purposes of inspection of documents, goods or other property.
(3) All statements, documents or other information supplied to, or applications made to the arbitral tribunal by one party shall be communicated to the other party, and any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties.
Section 24 of the Arbitration and Conciliation Act, 1996 provides clarity on how arbitral proceedings should be conducted. It plays a crucial role in ensuring fair and transparent conduct of arbitral proceedings by addressing aspects related to hearings and written proceedings. It also ensures that all parties in the proceeding receive an equal opportunity to present their case.
Subsection (1):
The arbitral tribunal has the authority to decide whether oral hearings are required for presenting evidence or arguments or if the matter can be resolved through written submissions. If any party requests an oral hearing, the tribunal must conduct it at an appropriate stage unless both parties have mutually agreed to dispense with oral hearings. To ensure efficiency, the tribunal should conduct oral hearings on a day-to-day basis and avoid unnecessary adjournments.
If adjournments are sought without valid justification, the tribunal may impose costs, including exemplary costs, on the requesting party.
In in the case of the Hon’ble High Court in ADV Consultants vs. Pioneer Equity Trade (India) Pvt. Ltd. 2009 SCC OnLine Mad 1072 observed,
“A combined reading of section 24(1) and section 19 of the said Act makes it clear that on the factual situation of this case, the petitioner has requested for oral hearing, which has been denied by the Arbitrator without assigning any reason. By virtue of the proviso to section 24(1) of the Act, that is, when one of the parties requests for oral hearing, it is the duty of the Arbitral Tribunal to conduct the same unless consent of the parties have been formulated by the Arbitral Tribunal agreeing not to have oral hearing. In the absence of any reason adduced by the learned Arbitrator, it has necessarily to be construed that the denial of oral hearing requested by the petitioner, by the Arbitrator is against the provisions of the Act.”
Subsection (2):
The tribunal is mandated to provide sufficient advance notice of any hearing or meeting to all parties involved. This requirement extends to proceedings related to the inspection of documents, goods, or property relevant to the dispute. The provision ensures that parties are adequately prepared and have fair opportunities to present their case.
Subsection (3):
All statements, documents, or applications submitted by one party to the tribunal must be shared with the opposing party. Any expert reports or evidentiary documents that the tribunal intends to rely upon must also be communicated to all parties involved. This subsection upholds the principle of natural justice by ensuring transparency and preventing any party from being taken by surprise.
Section 24 of the Arbitration and Conciliation Act, 1996, plays a pivotal role in maintaining the procedural sanctity of arbitration proceedings. It ensures that both oral and written hearings are conducted with fairness, transparency, and adherence to natural justice principles.
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