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?
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?
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Arbitration is time-sensitive—failure to file a claim leads to termination under Section 25(a).
Updated On: Nov 30, 2025
- The tribunal adjourns the case indefinitely
- The tribunal imposes a penalty but continues proceedings
- The tribunal assumes the claim is admitted
- The tribunal terminates the proceedings
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The Correct Option is D
Solution and Explanation
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.
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.
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