Skip to content

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

Under an agreement between Ramesh Traders and Bharat Agro, the parties agreed that the arbitral tribunal need not give reasons. The sole arbitrator issues a final award on the merits with no reasons. Which statement is correct under Section 31?

The award is acceptable. Section 31(3) requires reasons unless the parties have agreed that none are to be given. Since Ramesh Traders and Bharat Agro agreed to dispense with reasons, the tribunal need not state them, and the agreed-terms exception is not required.

  1. AThe award must fail because every award must state reasons
  2. BThe award is acceptable because the parties agreed that no reasons are to be givenCorrect
  3. CThe award is acceptable only if it is an award on agreed terms
  4. DThe award is acceptable only if the tribunal also records reasons in a separate note

Explanation

Section 31(3) requires reasons unless the parties have agreed that no reasons are to be given, or the award is on agreed terms under Section 30. The first exception applies here. The agreed-terms exception is separate and not needed.

Did you get it right without looking?

One question tells you little. A timed set on Preparation and Execution of Arbitral Award shows your real accuracy, how long you take and where you lose marks.

Practise Preparation and Execution of Arbitral AwardFree diagnostic mock

More Preparation and Execution of Arbitral Award questions