In Brief
Centrotrade and Hindustan Copper had contracted with a two-tier arbitration clause: first in India through the Indian Council of Arbitration, then on appeal to London under ICC Rules. After the Indian arbitrator issued a nil award, Centrotrade invoked the London appeal and obtained an award. The Supreme Court held that a two-tier arbitration system is permissible under Indian law. The 'arbitration result' from the first proceeding constitutes a binding award. The Arbitration and Conciliation Act does not prohibit—either explicitly or implicitly—parties from agreeing to appellate arbitration. Section 35's 'final and binding' language applies only to court challenges; it does not exclude contractually agreed second-instance review. Party autonomy is fundamental in arbitration; the two-tier system does not violate public policy. The Court directed the case to be relisted to consider enforcement of the London award.
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