Arbitral fairness requires notice before ex parte proceedings, and the ex parte order was set aside for lack of a further hearing opportunity.

In arbitral proceedings, a party should not be proceeded ex parte without a further notice of the tribunal's intention to do so and a fair opportunity to be heard. The Delhi HC held that repeated service attempts alone did not satisfy arbitral fairness, and that the communication requirement under Section 24(3) of the Arbitration and Conciliation Act, 1996 supported an additional intimation before ex parte action and reliance on evidence against the absent party. The ex parte order was set aside, and the appellant was permitted to participate in the arbitration subject to compliance with the imposed bank guarantee condition.

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Issues: Whether the ex parte order against the appellant in arbitral proceedings should be set aside on the ground that he was not given a proper opportunity of hearing before the Arbitrator proceeded ex parte.

Analysis: The record showed repeated attempts at service by registered post and subsequent publication, but the Court treated the central question as whether the Arbitrator, after the appellant's non-appearance, ought to have afforded one further opportunity and given notice of the intention to proceed ex parte. Relying on the distinction between arbitral procedure and the Code of Civil Procedure, and on the communication requirement reflected in Section 24(3) of the Arbitration and Conciliation Act, 1996, the Court held that arbitral fairness required a further intimation before proceeding ex parte and before relying on evidence against the absent party.

Conclusion: The ex parte order was set aside, and the appellant was granted an opportunity to participate in the arbitral proceedings upon furnishing the directed bank guarantee.

Final Conclusion: The appeal succeeded to the extent that the ex parte arbitral order was annulled and the matter was remitted for hearing of the appellant, subject to compliance with the condition imposed by the Court.

Ratio Decidendi: In arbitral proceedings, a party should not be proceeded ex parte without a further notice of the tribunal's intention to do so and a fair opportunity to be heard, consistent with the procedural fairness mandated by the Arbitration and Conciliation Act, 1996.

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