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

A three-member tribunal sitting in Pune decides a dispute between Kaveri Textiles Ltd and Sahyadri Dyes Pvt Ltd. Two arbitrators sign the award. The third, who dissented, refuses to sign. The award does not say why his signature is missing. Under Section 31, what is the position?

Majority signatures are sufficient only if the reason for each omitted signature is stated in the award. Two of three arbitrators signing is a majority, but because the award is silent on why the third did not sign, the condition in Section 31(2) is not satisfied.

  1. AThe award is incomplete because every member must sign in all cases
  2. BThe award satisfies the signature requirement only if the reason for the omitted signature is statedCorrect
  3. CThe award is valid because a majority signature suffices even if no reason is stated
  4. DThe award is valid only if the parties consent in writing to the missing signature

Explanation

Section 31(2) says that where there is more than one arbitrator, the signatures of a majority of all members are sufficient so long as the reason for any omitted signature is stated. Here two of three signed, but no reason was stated, so the condition is not met. The option saying majority alone suffices ignores the reason requirement.

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