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10.—(1) If on a reference under regulation 9 relating to a detention notice the arbitrator decides that the company has proved—
(a)that the matter complained of did not constitute a valid basis for the opinion of the officer; and
(b)that there were no reasonable grounds for the issue of the detention notice;
the arbitrator must award the company such compensation in respect of any loss suffered in consequence of the detention of the ship as the arbitrator thinks fit.
(2) Any compensation awarded under this regulation is payable by the Secretary of State.
(3) In the application of this regulation to Scotland any reference to an arbitrator is to be construed as a reference to an arbiter.
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