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CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

A three-member tribunal is deciding a dispute between Himalaya Agro Ltd and Rajdhani Cold Storage. The agreement does not alter the default rule on decisions. Two arbitrators favour allowing the claim on the merits, while the presiding arbitrator disagrees. How is the decision on the merits made?

The decision is made by a majority of all tribunal members, so the claim is allowed. Unless the parties agree otherwise, any decision of a multi-member tribunal follows the majority. The presiding arbitrator alone can decide only procedural questions, and only if authorised.

  1. ABy the presiding arbitrator, whose view prevails
  2. BBy a majority of all members of the tribunal, so the claim is allowedCorrect
  3. COnly by unanimous agreement of all three members
  4. DBy the party-appointed arbitrators alone, excluding the presiding arbitrator

Explanation

Unless the parties agree otherwise, any decision of a tribunal with more than one arbitrator is made by a majority of all its members. Two of three is a majority. Presiding arbitrator authority is limited to procedural questions, and only if authorised.

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