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

A three-member tribunal in a construction dispute between Varma Infra Ltd and Kaveri Steels Ltd finalises its award. Two arbitrators sign it. The third, who is seriously ill, cannot sign, and the award records this as the reason for the missing signature. Under Section 31, what is the position of the award?

The award is valid on this point. Where a tribunal has several arbitrators, signatures of a majority of all members are enough, provided the reason for any omitted signature is stated. Two of three signed and the illness is recorded, so the signature requirement is met.

  1. AThe award is invalid because every arbitrator must sign
  2. BThe award satisfies the signature requirement because a majority has signed and the reason for the omitted signature is statedCorrect
  3. CThe award is valid only if the parties consent in writing to the missing signature
  4. DThe award is valid only if the presiding arbitrator is one of the signatories and the court approves it

Explanation

Section 31(2) says that in a tribunal of more than one arbitrator, the signatures of a majority of all members suffice so long as the reason for any omitted signature is stated. Two of three is a majority and the reason is recorded. The option demanding all signatures ignores sub-section (2).

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