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CS Professional · Arbitration, Mediation and Conciliation · Preparation and Execution of Arbitral Award

A three-member tribunal hears a construction dispute between Bharat Infra Ltd and Sundaram Steels Pvt Ltd in Chennai. At the time of signing the final award, arbitrator Mr. Rao is abroad and unreachable. The other two arbitrators sign the award and record in it why his signature is missing. What is the position on the validity of the award as regards signatures?

The award is valid. Where there is more than one arbitrator, signatures of a majority of all the tribunal members are enough, provided the reason for any omitted signature is stated in the award. Two of three arbitrators signed and gave the reason, so no party consent or court approval is needed.

  1. AThe award is invalid because every member must sign
  2. BThe award is valid because the signatures of a majority of all members suffice if the reason for the omitted signature is statedCorrect
  3. CThe award is valid only if both parties consent in writing to the missing signature
  4. DThe award is valid only if the Court approves the omission

Explanation

Section 31(2) provides that in proceedings with more than one arbitrator, the signatures of the majority of all the members are sufficient so long as the reason for any omitted signature is stated. Two of three is a majority and the reason is stated. The option demanding all signatures ignores this rule.

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