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CS Professional · Labour Laws and Practice · Law of Industrial Relations

Meghdoot Textiles Pvt Ltd and its workers agree in writing to refer a pay-structure dispute to two arbitrators, Mr. Iyer and Ms. Rao. Under the Industrial Relations Code, 2020, what must the arbitration agreement also provide?

The agreement must provide for the appointment of an umpire, because the reference is to an even number of arbitrators. If the two arbitrators are equally divided, the umpire enters upon the reference and the umpire's award prevails as the arbitration award under the Code.

  1. AThe appointment of another person as umpire, since the reference is to an even number of arbitratorsCorrect
  2. BAppointment of a third arbitrator by the High Court
  3. CA condition that the arbitrators must be retired judges
  4. DNothing further, as the arbitrators must then reach a unanimous award

Explanation

Where the arbitration agreement refers the dispute to an even number of arbitrators, it must provide for another person as umpire. The umpire enters upon the reference if the arbitrators are equally divided, and the umpire's award prevails. Appointment by the High Court or a retired-judge condition is not required by the provision.

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