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Under the Act, an **arbitral award must be reasoned**, but there are TWO exceptions where an award without reasons is valid. Which is one of those exceptions?
A{'text': 'Where any party to the arbitration is a resident outside India under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'A'}
B{'text': 'Where the arbitration agreement expressly provides that no reasons are to be given', 'label': 'B'}
C{'text': 'Where the value of the dispute exceeds rupees one crore under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'C'}
D{'text': 'Where the arbitral tribunal consists of a sole arbitrator under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'D'}
Answer & Solution
Correct answer: B. {'text': 'Where the arbitration agreement expressly provides that no reasons are to be given', 'label': 'B'}
1. Lesson 13's features-of-award table lists the reasoned-award rule with two exceptions:
(a) **Where the arbitration agreement expressly provides that no reasons are to be given**;
(b) Where the award has been made under **Section 30** of the Act — settlement recorded in the form of an arbitral award on agreed terms.
2. In all other cases, the award must record reasons; formulation of reasons is described as a "powerful discipline".
3. The other options describe circumstances outside Section 31(3).
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 13 (Arbitration and Conciliation Act, 1996), pp. 297-303._
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