Under Section 25 of the Arbitration and Conciliation Act, 1996, if the respondent fails to file its statement of defence, the tribunal continues the proceedings without treating that failure as an admission of the claimant's allegations — the claimant still has to prove its case.
If a party fails to appear at a hearing or produce evidence without sufficient cause, the tribunal may proceed on the material already before it and make an award on that basis.
Non-participation is rarely a good strategy: it forfeits the chance to test the claimant's evidence and narrows the record available if the award is later challenged. A party with genuine difficulty attending should seek an adjournment through the registry rather than simply not appearing.