The 1899 Hague Convention allowed arbitrators to "record their dissent," but a proposal to let them state the reasons for their dissent was rejected for fear of "the possibility of having two awards in each case and of bringing the disagreement of the arbitrators before the public."
Understanding Minority Awards
A minority award, also known as a dissenting opinion in arbitration, occurs when one or more arbitrators disagree with the majority decision. The legal status and treatment of such dissents vary significantly across jurisdictions.
Position in India
Indian arbitration law, governed by the Arbitration and Conciliation Act, 1996, does not explicitly address minority awards. The courts have generally held that the majority decision prevails, but the role of dissenting opinions remains ambiguous.
International Comparison
Different jurisdictions treat minority awards differently. In some civil law countries, dissenting opinions are discouraged or even prohibited. Common law jurisdictions tend to be more accepting of dissents, viewing them as valuable contributions to legal discourse.
Practical Implications
The treatment of minority awards has significant practical implications for parties involved in arbitration. Understanding how dissents are treated can influence the selection of arbitrators and the choice of arbitral seat.
Conclusion
While India has made significant strides in developing its arbitration framework, the treatment of minority awards remains an area requiring further clarity and development.