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CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

A three-member tribunal is hearing a dispute between Ganga Builders and Konkan Infra. The parties have not agreed on any decision-making rule. Two arbitrators favour allowing a document, and the third disagrees. How is the decision of the tribunal made?

The decision is made by a majority of all the members, so the two arbitrators' view prevails. Unless the parties agree otherwise, unanimity is not required, and the presiding arbitrator alone may decide only procedural questions and only when duly authorised.

  1. AIt fails, as decisions need unanimity of all members
  2. BBy majority of all its members, so the view of the two arbitrators prevailsCorrect
  3. CBy the presiding arbitrator alone, as the tribunal head
  4. DBy the party who appointed the dissenting arbitrator

Explanation

Unless the parties have otherwise agreed, 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. The presiding arbitrator can decide only questions of procedure, and only if authorised by the parties or all members.

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