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

In an arbitration between Iyer Pharma Ltd and Khan Logistics, Iyer Pharma wins on its main claim but loses on one separate claim. The tribunal decides to make an order on costs. Which approach is consistent with Section 31A?

The tribunal has discretion and must consider all circumstances including partial success. It may order a party to pay a proportion of the other's costs. The general rule that the loser pays can be departed from by recording reasons in writing.

  1. AThe tribunal must order each party to bear its own costs because success was partial
  2. BThe tribunal must order the unsuccessful party to pay all costs without regard to circumstances
  3. CThe tribunal may order costs after having regard to all circumstances, including partial success, and may order payment of a proportion of the other party's costsCorrect
  4. DThe tribunal has no power to award costs unless the agreement provides for them

Explanation

Section 31A(2) sets the general rule that the unsuccessful party pays, but the tribunal may order differently with written reasons. Section 31A(3)(b) requires regard to partial success, and 31A(4)(a) allows a proportion of costs. Options A and B treat the rule as rigid.

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