Matchpoints. NAP-B district championship.
At his 2nd turn, West asks about 2N. North says N/S haven't played together much and he's not sure they have an agreement. He offers to speculate, but E/W decline.
After the auction and prior to leading, East asks about 2N again and points out to South that he should be correcting his partner at this stage if he thinks they have an agreement. He states "it's all on the card." N/S convention card, in the section for "Notrump Overcalls" shows 15-18 range and "systems on". N/S are playing Jacoby transfers. Of course, the CC doesn't have a place to mark whether this applies to a NT overcall in this particular auction.
E/W call director, claiming that if South believes his 2N call is a natural strong NT, 3♦ should have been announced as a transfer and South should have bid 3♥. Suggestion is that South took advantage of UI from his partner's uncertain response to the 2N query.
Director says play on. Table result is N/S -100. Director then rules that N/S should be playing in 3♥ down 3 for -300.
N/S appeal claiming they in fact had no agreement for this auction and South shouldn't be forced to bid 3♥. Appeal is never heard because in the end it didn't affect the overall results of the pairs contest.
How should be the result of the appeal?