Onko Metals Inc., a foreign supplier, entered into a contract with Premo Copper Ltd., an Indian company, for the supply of raw materials. The contract incorporated a multi-tier dispute resolution clause, stipulating that

The facts of the given situation are similar to the case M/s Centrotrade Minerals and Metal Inc. v. Hindustan Copper Ltd. In this case, Centrotrade Minerals & Metal Inc., a U.S.-based company, entered into a contract with Hindustan Copper Ltd. (HCL) for the supply of copper concentrate. The agreement included a two-tiered arbitration clause, allowing initial arbitration under Indian Council of Arbitration (ICA) rules in India, with an option to appeal through a second arbitration under International Chamber of Commerce (ICC) rules in London. A dispute arose over the quantity of delivered goods, leading to arbitration in India, where the tribunal ruled in favor of HCL with a nil award. Dissatisfied, Centrotrade invoked the second-tier arbitration in London, where the ICC arbitrator ruled in its favor, awarding around $1.5 million. HCL challenged the validity of this dual-arbitration structure, leading to prolonged litigation in India. While the Calcutta High Court initially upheld the enforcement of the ICC award, a Division Bench later set it aside, terming the conflicting awards as "mutually destructive." The matter reached the Supreme Court of India, which, in a 2017 judgment, upheld the validity of two-tiered arbitration, reinforcing the principle of party autonomy. In 2020, the Court ruled in favor of enforcing the London ICC award, emphasizing minimal judicial interference in foreign arbitral awards. This case set a significant precedent in Indian arbitration law, strengthening India's pro-arbitration stance and reinforcing its obligations under international arbitration frameworks. Two Tier Arbitration means in case an award given by a sole arbitrator it would be appealed to an Arbitral Tribunal consisting of a panel of three arbitrators or a higher odd number. This concept is permissible subject to having a clause to the effect in the arbitration agreement. In that event, the award given by the sole arbitrator cannot be enforced and after exhausting the appeal before the panel of arbitrators, the award so rendered by the said panel will be enforceable subject to the application of provisions under Section 35 and 36 of the Arbitration and Conciliation Act, 1996. A three Judges bench of the Hon'ble Supreme Court of India delivered a judgment in M/s Centrotrade Minerals and Metal Inc. v. Hindustan Copper Ltd upholding the validity of such constitution of appellate Arbitral Tribunals.