Centrotrade`s two-stage compromise clause stated that the decision was consistent with the Court`s recent desire to harmonize Indian law with international arbitration rules and procedures. There is also timely assurance to the business community that India is in fact pro-arbitration and will eliminate anomalies in the existing dispute resolution framework for the early resolution of commercial disputes. HCL`s position on the second issue was also seasoned with arguments about Indian public order and “natural law.” In particular, it submitted that it had been denied the opportunity to refer its case to the ICC arbitration. But HCL had been fully informed throughout the progress of the Icc procedure. The ISC found that HCL first knowingly and deliberately refused to participate in CCI arbitration; then changed tactics, as the referee`s schedule for the postponements of the games (repeatedly extended) has expired; then asked for additional extensions of time, which were also granted; and finally his presentation shortly after the final conclusion of the minutes by the arbitrator; and that the arbitrator had taken these late comments into account in his findings and in the arbitration decision. (HCL stated that its written requests to the arbitrator in London on 13 September 2001 had been delayed by the events of 9-11, although HCL did not provide evidence that the transfer of tele-copy or courier transport by its lawyer in New Delhi to the London Arbitrator had been disrupted by the events of 11 September 2001 in the United States.) (We represented Centrotrade Minerals and Metals in obtaining the ICC arbitration award, which was the subject of the isC`s recent decision, and Mintz Levin serves as an instructional advisor to follow this award in India.) The fact that a party is being tried for a challenge to a premium does not ipso facto prohibit the parties from agreeing on a second look at an arbitral award with the intention of an early resolution of disputes and disputes… This is not to reduce the autonomy of the parties or to prevent them from using another acceptable method of redress, such as an appeal arbitration procedure. This is a very important issue to understand the validity of the two-stage arbitration clause in India. With the advent of globalization and the opening up of the Indian economy, many multinationals arrived in India.

A strong dispute resolution system is one of the pillars to protect the interests of economic operators. After deliberating on the first issue, the three-judge bank held that a two-stage arbitration agreement, such as the arbitration agreement between the parties, is valid and legally admissible under the Arbitration Act.