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Section 18: Equal treatment of parties

Arbitration and Conciliation Act, 1996 • Official Statutory Text & Practice Guide

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Act 1996
Section 17 All 87 Sections Schedules (4th, 5th, 7th) Section 19

Legal Commentary & Landmark Judgments: Section 18

Section 18 of the Arbitration and Conciliation Act, 1996 codifies the foundational Magna Carta of arbitral procedure, mandating that the parties shall be treated with equality and that each party shall be given a full opportunity to present their case.

  • Equal Treatment Mandate: The parties shall be treated with equality.
  • Full Opportunity to Present Case: Each party shall be given a full opportunity to present their case (audi alteram partem).
  • Non-Derogable Public Policy Rule: Section 18 is a mandatory, non-derogable provision; any arbitral award passed in violation of equal treatment or natural justice is void and liable to be set aside under Section 34(2)(a)(iii) and Section 34(2)(b)(ii).
  • Equality in Evidence & Arguments: Neither party can be granted unilateral access to the tribunal or denied the right to cross-examine material witnesses.
Key Landmark Precedents:
  • Associate Builders v. Delhi Development Authority, (2015) 3 SCC 49: The Supreme Court established that compliance with natural justice and equal treatment under Section 18 is a fundamental policy of Indian law; an award passed without giving a party full opportunity to present their case is patently illegal.
  • Ssangyong Engineering & Construction Co. Ltd. v. NHAI, (2019) 15 SCC 131: The Supreme Court authoritatively held that relying on third-party circulars or documents not shared with the parties violates Section 18, rendering the award contrary to public policy.
Courtroom Practice & Strategic Litigation Guidance:

If an arbitral tribunal refuses to grant time to lead rebuttal evidence, declines cross-examination, or receives unilateral written submissions from the adversary, file an immediate written protest citing Section 18 to lay the foundation for a Section 34 challenge.

Section 17 All 87 Sections Schedules (4th, 5th, 7th) Section 19