Section 23 of ACA : Section 23: Statements Of Claim And Defence

Explanation using Example

Imagine that Company A and Company B have a dispute over a breach of contract and have agreed to resolve their conflict through arbitration, as per their contract's arbitration clause. According to Section 23(1) of The Arbitration and Conciliation Act, 1996, Company A (the claimant) submits a detailed statement to the arbitral tribunal within the agreed time, explaining the facts of the case, the points of contention, and the type of compensation they seek. Company B (the respondent) responds with a statement of defense, addressing each point raised by Company A.

Both companies provide important documents supporting their claims and defenses as per Section 23(2), such as contract agreements, email correspondences, and proof of transactions.

During the proceedings, Company B decides to submit a counterclaim against Company A for damages due to late delivery of services, as allowed by Section 23(2A). The arbitral tribunal agrees to consider the counterclaim since it is within the scope of the arbitration agreement between the two companies.

As the arbitration progresses, Company A realizes they have additional evidence that could support their original claim. With the tribunal's permission, and as long as it does not cause undue delay, Company A amends their claim to include this new evidence, in line with Section 23(3).

The arbitral tribunal ensures that the exchange of statements of claim and defense is completed within six months of their appointment, adhering to Section 23(4), to maintain the efficiency of the arbitration process.