Pre-Arbitral Steps in a Multi-Tier Dispute Resolution System in India—Analysing the Current Quagmire and the Way Forward

Abstract

Multi-Tier Dispute Resolution (MDR) clauses provides parties with the freedom to decide the manner of resolution of disputes amongst themselves. This article shall deal with the workings of such clauses in elaborate detail, especially from the perspective of the pre-arbitral steps and how the different courts in India have dealt with the issue. This article will also attempt to establish that pre-arbitral clauses can be either directory or mandatory in nature and certain types of clauses cannot be painted with the same brush across the board. The fulcrum argument of the authors is that compliance with pre-arbitral tiers primarily depends upon the language of the drafted pre-escalation clause. In the last limb, the authors will engage in a comparative analysis with regard to the approach adopted by various countries to MDR clauses with a view to suggest the path forward for India while also suggesting possible MDR clauses.