Section 25(b) in The Arbitration And Conciliation Act, 1996
(b)the respondent fails to communicate his statement of defence in accordance with sub-section (1) of section 23, the arbitral tribunal shall continue the proceedings without treating that failure in itself as an admission of the allegations by the claimant [and shall have the discretion to treat the right of the respondent to file such statement of defence as having been forfeited] [Inserted by Act No. 3 of 2016 dated 31.12.2015.];