Arbitration and Conciliation Act, 1996

Section 24: Hearings and Written Proceedings

Section 24 of the Arbitration and Conciliation Act, 1996 governs how an arbitral tribunal conducts oral hearings and document-based proceedings. It protects procedural fairness by addressing requests for oral hearings, advance notice of hearings and inspections, communication of material between the parties, and the handling of unnecessary adjournments.

Key points under Section 24
  • The arbitral tribunal may ordinarily choose between oral hearings and proceedings based on documents and other materials, unless the parties have agreed otherwise.
  • If a party requests an oral hearing, the tribunal must hold one at an appropriate stage unless the parties have agreed that no oral hearing will be held.
  • Oral hearings should, as far as possible, proceed on a day-to-day basis, and adjournments should not be granted without sufficient cause.
  • Parties must receive sufficient advance notice of hearings and inspection meetings.
  • Statements, documents, applications, expert reports and evidentiary material relied upon by the tribunal must be communicated to the parties.

Meaning and scope of Section 24

Section 24 deals with the procedural mode of an arbitration after the pleadings and materials are before the arbitral tribunal. The provision balances procedural flexibility with the requirement of equal and fair participation. It should be read together with Section 18, which requires equal treatment of the parties and a full opportunity to present their case, and Section 19, which gives the parties and tribunal flexibility in determining arbitral procedure.

Text of Section 24 - Hearings 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.

Amendment note: The second proviso to Section 24(1), concerning day-to-day hearings, adjournments and costs, was inserted by the Arbitration and Conciliation (Amendment) Act, 2015 with effect from 23 October 2015.

Section 24(1): Oral hearing or written proceedings

Unless the parties have agreed on a different procedure, the arbitral tribunal has discretion to determine whether the matter should be heard orally, decided on documents and other materials, or conducted through a combination of both methods. This flexibility is one of the procedural features of arbitration.

The first proviso limits that discretion where a party requests an oral hearing. In that situation, the tribunal is required to hold an oral hearing at an appropriate stage unless the parties have previously agreed that no oral hearing will be held.

Day-to-day hearings, adjournments and costs

The second proviso to Section 24(1) seeks to reduce avoidable delay. As far as possible, oral hearings for evidence or oral argument are to proceed on a day-to-day basis. An adjournment should not be granted unless sufficient cause is shown. Where an adjournment is sought without sufficient cause, the tribunal may impose costs, including exemplary costs.

Section 24(2): Advance notice of hearings and inspections

Section 24(2) requires sufficient advance notice of any hearing. The same requirement applies to meetings of the arbitral tribunal held for inspection of documents, goods or other property. The purpose is to ensure that each party has a fair opportunity to prepare and participate.

Section 24(3): Communication of documents and evidence

Section 24(3) embodies an important procedural fairness requirement. Material supplied by one party to the tribunal must also be communicated to the other party. The obligation extends to statements, documents, information and applications. Expert reports and evidentiary documents on which the tribunal may rely must likewise be communicated to the parties.

Practical effect: A tribunal should not rely on evidentiary material, expert reports or party submissions that have not been disclosed to the parties. Section 24 therefore supports transparency and an effective opportunity to respond during the arbitral process.

Related provisions

Section 24 forms part of the procedural framework for arbitral proceedings. It is closely connected with provisions dealing with equal treatment of parties, determination of procedure, statements of claim and defence, default of a party, tribunal-appointed experts, court assistance in taking evidence, and the time limit for making an arbitral award.

Official text

For the current official text of the Arbitration and Conciliation Act, 1996, including Section 24 and its amendment notes, refer to India Code, maintained by the Government of India.

Official India Code - Arbitration and Conciliation Act, 1996