[jmcw]

North opens 1NT-->Pass-->1♦-->

After a pause, West called the Director, South apparently woke up and blurted out "Oh its a transfer" (before the director arrived).
The director ruled that it was a "mechanical" error and allowed South to corrected the bid to 2♦.

West felt he should have had the option of accepting the bid and that North had gained unauthorized information. The Director disagreed and ruled the auction to continue without penalty.

Was this ruling correct?

[jnichols]

The director ruled that the 1♦ bid was a mechanical error and therefore unintended (inadvertant in the old Laws). It sounds like South attempted to correct it when he realized that the bid on the table was not what he attempted. Thus the bid is corrected and West does not get a chance to accept the original 1♦.

South's blurted "Oh its a transfer" is unauthorized to information for North. But if, in fact, N/S play transfers then there really is no logical alternative for North except for completing the transfer, so I don't see a problem here.

Yes, the director's ruling is correct.