Equal treatment of parties
Section 18 of the Arbitration and Conciliation Act, 1996 deals with equal treatment of parties. The parties shall be treated with equality and each party shall be given a full opportunity to present his case. The Act came into force on 22 Aug 1996.
The parties shall be treated with equality and each party shall be given a full opportunity to present his case.
Section 18, The Arbitration and Conciliation Act, 1996 (Act 26 of 1996).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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International Seaport Dredging Pvt. LTD vs Kamarajar Port Limited
Court's Decision & Legal Precedent
Statutory bodies and government corporations are not entitled to differential treatment in arbitration proceedings compared to private entities. The Arbitration Act is a self-contained code that mandates equal treatment of all parties under Section 18. When considering applications for stay of arbitration awards for payment of money, courts must apply principles of Order XLI Rule 5 of CPC as guidance, but the Arbitration Act provisions take precedence. The status of a party as a statutory undertaking or its perceived reliability cannot be basis for modifying conditions of stay. Instead, courts must require deposit of a substantial portion of the decretal amount (here, 75%) as condition for stay, regardless of the party's nature or status.
On this section: Parties shall be treated with equality - cited to support principle that no differential treatment should be given to government parties
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Srei Infrastructure Finance Limited vs Tuff Drilling Private Limited
Court's Decision & Legal Precedent
An arbitral tribunal which has terminated proceedings under Section 25(a) of the Arbitration and Conciliation Act, 1996 due to non-filing of claim by the claimant retains jurisdiction to consider an application for recall of the order terminating the proceedings if the claimant shows sufficient cause. The tribunal does not become functus officio after passing an order under Section 25(a). The phrase 'where without showing sufficient cause' in Section 25(a) contemplates that sufficient cause can be shown either before or after the termination order is passed. If sufficient cause is shown, the arbitral tribunal can accept the statement of claim and permit the claimant to file the claim even after the time fixed under Section 23(1) has expired. The principles underlying Order 9 Rule 13 of the Civil Procedure Code, 1908 can be invoked by the arbitral tribunal to recall orders passed under Section 25(a) on sufficient cause being shown. The non-use of the phrase 'the mandate of the arbitral tribunal shall terminate' in Section 25(a), as opposed to its use in Section 32(3), indicates that the legislature intended that if the claimant shows sufficient cause, the proceedings can be re-commenced.
On this section: Principle of natural justice requiring parties to be treated with equality and given full opportunity to present their case
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Punjab Roads vs Som Datt Builders Pvt. LTD
Court's Decision & Legal Precedent
When a contract contains conflicting provisions regarding payment for specific work, the Order of Precedence established in the contract documents determines which provision prevails. If the employer includes a work item as a separate priced item in the Bill of Quantities (which forms part of the Acceptance Letter), such inclusion overrides any general restriction against separate payment for that work contained in the Specifications. The arbitrator's interpretation of contract terms based on the Order of Precedence is binding and cannot be reappreciated by the court unless there is patent illegality. Additionally, charging interest on the principal amount of an arbitration award is permissible under law.
On this section: Referenced in conjunction with Section 34(2)(b)(ii) for the objection petition framework
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 18
What have the courts held on Section 18 of the Arbitration and Conciliation Act?
International Seaport Dredging Pvt. LTD vs Kamarajar Port Limited (24 Oct 2024) is the leading judgment on this section among those set out below: Parties shall be treated with equality - cited to support principle that no differential treatment should be given to government parties. Another 2 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2016 to 2024.
How do I find court cases under Section 18 of the Arbitration and Conciliation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Arbitration Act 18, section 18 Arbitration Act, section 18 of the Arbitration and Conciliation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with International Seaport Dredging Pvt. LTD vs Kamarajar Port Limited (24 Oct 2024).
When did Section 18 of the Arbitration and Conciliation Act come into force?
Section 18 of the Arbitration and Conciliation Act, cited as Arbitration Act 18, came into force on 22 Aug 1996, having been enacted on 16 Aug 1996. It is in force as at the date shown on this page.
Other sections of this Act
- 8. Power to refer parties to arbitration where there is an arbitration agreement1029 words
- 11. Appointment of arbitrators1027 words
- 34. Application for setting aside arbitral awards861 words
- 2. Definitions732 words
- 29A. Time limit for arbitral award635 words
- 57. Conditions for enforcement of foreign awards519 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.