Section 23: Statements of claim and defence

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

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1996
Statutory Defined Terms in this Section: (Click any term for official legal definition)

Legal Commentary & Landmark Judgments: Section 23

Section 23 of the Arbitration and Conciliation Act, 1996 regulates the filing of statements of claim and defence, counterclaims, set-offs, and amendments, prescribing a strict six-month timeline for completion of pleadings in domestic arbitrations.

  • Statement of Claim Contents: Within the period agreed or determined by the tribunal, claimant shall state facts supporting claim, points at issue, and relief or remedy sought.
  • Statement of Defence & Counterclaim: Respondent shall state their defence in respect of these particulars, and may submit a counterclaim or plead a set-off.
  • Mandatory Six-Month Timeline (2019 Amendment): Section 23(4): Statement of claim and defence shall be completed within a period of six months from the date the arbitrator(s) received notice of appointment in writing.
  • Amendment of Pleadings: Parties may amend or supplement claim or defence during proceedings unless the tribunal considers it inappropriate having regard to delay.
Key Landmark Precedents:
  • State of Goa v. Praveen Enterprises, (2012) 12 SCC 581: The Supreme Court authoritatively analyzed Section 23, ruling that counterclaims and set-offs can be raised directly in the statement of defence without requiring a separate reference notice under Section 21.
  • Associate Builders v. Delhi Development Authority, (2015) 3 SCC 49: Held that an arbitral tribunal cannot award claims that were never pleaded in the Statement of Claim under Section 23.
Courtroom Practice & Strategic Litigation Guidance:

In Statements of Claim and Defence, annex all primary documentary exhibits, correspondence, and calculation tables; remember that under Section 23(4), pleadings must strictly conclude within six months of tribunal constitution.