Appellate Arbitration Permissible In India – But Should You Provide For It?

• Supreme Court permits two-tier i.e. appellate arbitration in India
• Party autonomy is paramount in arbitration under the Indian Arbitration & Conciliation Act, 1996.
• No express and implied prohibition of appellate arbitration is contained in the Arbitration & Conciliation Act, 1996.

A three-judge bench, of the Supreme Court of India (SC), in Centrotrade Minerals & Metal v. Hindustan Copper has found that parties may provide for an appeal in their arbitration clause and such a choice would not be contrary to the laws of India. The issue, originally heard in 2006, had been referred to a higher bench due to a difference of opinion between the two judges hearing the case.

The Dispute Resolution Clause