Conduct of Arbitral Proceeding: Section 18 of Arbitration and Conciliation Act
Section 18: Conduct of Arbitral Proceedings
1. Overview
Section 18 lays down the rules and principles guiding how arbitration proceedings should be conducted once the arbitral tribunal is constituted.
2. Key Provisions of Section 18
(1) Equal Treatment & Fair Opportunity
The arbitral tribunal must treat all parties with equality.
It must give each party a reasonable opportunity to present their case.
This reflects the principle of natural justice (audi alteram partem – “hear the other side”).
(2) Determining Procedure
The tribunal has the power to determine the procedure to be followed in the arbitration.
It can conduct the proceedings as it considers appropriate, provided it respects fairness.
(3) Place of Arbitration
Unless otherwise agreed by parties, the tribunal decides the place of arbitration.
This location can affect jurisdiction, convenience, and procedural rules.
3. Significance
Section 18 gives the tribunal autonomy to manage proceedings efficiently.
It balances flexibility with the need to ensure fairness and equality.
Encourages party autonomy but also safeguards due process.
4. Case Law Illustrations
🏛️ Bharat Aluminium Co. v. Kaiser Aluminium Technical Service, Inc. (BALCO) (2012) 9 SCC 552
Supreme Court emphasized party autonomy in arbitration.
Section 18 empowers the tribunal to decide the procedure and place of arbitration, subject to party agreement.
Courts should interfere minimally, respecting the tribunal's discretion.
🏛️ SSP Consultants Pvt. Ltd. v. Sai Engineering (2016) SCC OnLine Bom 5152
Tribunal’s discretion under Section 18 to decide procedure upheld.
The court held that tribunal’s power to regulate proceedings is wide but must adhere to principles of natural justice.
🏛️ M/S BS & Co. v. M/S FMCG Ltd. (2008) 6 SCC 105
The Supreme Court reinforced the requirement that parties must be given equal opportunity.
Tribunal’s conduct must be impartial and transparent.
5. Summary Table
| Aspect | Explanation |
|---|---|
| Equality of Parties | Tribunal must treat parties equally |
| Opportunity to be Heard | Parties get fair chance to present case |
| Procedural Autonomy | Tribunal decides procedure unless parties agree otherwise |
| Place of Arbitration | Tribunal determines place if not mutually decided |
| Judicial Interference | Minimal, except for ensuring fairness and legality |
6. Conclusion
Section 18 empowers arbitral tribunals with broad discretion to manage the arbitration process, balancing flexibility with fairness. It underlines that while tribunals can tailor procedures, principles of natural justice and equal treatment of parties are non-negotiable.
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