What is Section 19 of Arbitration and Conciliation Act

Section 19. Determination of rules of procedure under Arbitration and Conciliation Act, 1996

CHAPTER V

Conduct Of Arbitral Proceedings

Section 19. Determination of rules of procedure. 

(1) The arbitral tribunal shall not be bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 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.

Scope of Section 19 of Arbitration and Conciliation Act, 1996

In case titled Sahyadri Earthmovers Vs. L & T Finance Limited and Anr. Bombay HIgh Court ruled ion Section 19 scope,-

'Section 19 of the Arbitration Act, which is reproduced contemplates when the parties agree on a particular procedure to be followed by the Arbitral Tribunal, all are bound to follow the same, but in its absence, the Arbitral Tribunal is bound to conduct the proceeding in the manner it considers appropriate. It also means that the Arbitrator has power to determine the admissibility, relevance, materiality and weight in evidence though the provisions of the Code of Civil Procedure and/ or Indian Evidence Act, are not binding upon the Tribunal.

The principles of natural justice, fair play, equal opportunity to both the parties and to pass order, interim or final, based upon the material/evidence placed by the parties on the record and after due analysis and/or appreciation of the same by giving proper and correct interpretation to the terms of the contract, subject to the provisions of law, just cannot be overlooked.'