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(1)If on a reference under section 96 relating to a detention notice in relation to a ship—
(a)the arbitrator decides that any matter did not constitute a valid basis for the relevant inspector’s opinion, and
(b)it appears to him that there were no reasonable grounds for the inspector to form that opinion,
the arbitrator may award the owner of the ship such compensation in respect of any loss suffered by him in consequence of the detention of the ship as the arbitrator thinks fit.
(2)Any compensation awarded under this section shall be payable by the Secretary of State.
(3)In the application of this section to Scotland any reference to an arbitrator shall be construed as a reference to an arbiter.
(4)In this section “relevant inspector” has the same meaning as in section 95.
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