Question

According to Section 25(a) of the Arbitration and Conciliation Act, 1996, what happens if the claimant fails to submit his statement of claim without sufficient cause?

• A. The tribunal adjourns the case indefinitely
• B. The tribunal imposes a penalty but continues proceedings
• C. The tribunal assumes the claim is admitted
• D. The tribunal terminates the proceedings

Hint:

Arbitration is time-sensitive—failure to file a claim leads to termination under Section 25(a).

Answer 1

The Correct Option is D

Step 1: Understanding Section 25(a).
If the claimant fails to file the statement of claim without reasonable cause, the arbitral tribunal is empowered to terminate the proceedings.
Step 2: Rationale.
The purpose is to prevent delay and ensure that arbitration continues efficiently.
Step 3: Conclusion.
Thus, non-filing of the claim results in termination, not adjournment or presumption of admission.