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

Multi-Tier Dispute Resolution ( MDR) clauses provide parties with the freedom to decide the manner of resolution of disputes amongst themselves. This article deals 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. The article will also attempt to establish that prearbitral clauses can be either directory or mandatory in nature and certain types of clauses cannot all be painted with the same brush. The main argument of the authors is that compliance with prearbitral tiers primarily depends upon the language of the drafted pre-escalation clause. In the last section, 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 way forward for India while also suggesting possible MDR clauses