Question

The arbitral tribunal shall not be bound by the

• A. Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872.
• B. The Indian Evidence Act, 1872.
• C. The Code of Civil Procedure, 1908.
• D. None of the above

Hint:

A major advantage of arbitration is its procedural flexibility. Remember that while the tribunal is not bound by procedural codes like CPC and the Evidence Act, it must always follow the principles of natural justice and the agreed-upon substantive law of the contract.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The question asks about the procedural laws that an arbitral tribunal is not strictly required to follow during arbitration proceedings. This is a key feature of arbitration, designed to make it more flexible and efficient than traditional court litigation.
Step 2: Detailed Explanation:
Section 19(1) of the Arbitration and Conciliation Act, 1996, is titled "Determination of rules of procedure". It explicitly states: "The arbitral tribunal shall not be bound by the Code of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872)."
This provision gives the arbitral tribunal and the parties considerable flexibility. Instead of being tied to the rigid procedures of the CPC and the strict rules of evidence, the parties are free to agree on the procedure to be followed (Section 19(2)). If they don't agree, the arbitral tribunal can conduct the proceedings in the manner it considers appropriate (Section 19(3)).
The tribunal is, however, bound to follow the principles of natural justice and must decide the dispute in accordance with the substantive law chosen by the parties (Section 28).
Step 3: Final Answer:
Section 19 of the Arbitration Act explicitly exempts the arbitral tribunal from being bound by the Code of Civil Procedure, 1908, and the Indian Evidence Act, 1872. Therefore, option (A) is the most comprehensive and correct answer.