Author(s): Sumit Raj Poswal

Abstract: Due to its various benefits and adaptability, arbitration is becoming a preferred method of resolving disputes. Escalation clauses, often referred to as step clauses or multi-tier arbitration clauses, are currently being added to agreements and contracts as a result of the expanding usage of arbitration in legal agreements across the globe. Multi-tier arbitration agreements require the parties to first attempt to resolve any disputes, if any, through several alternative dispute resolution procedures.In a time of significant investment, exchange, and cross-border trade, modern commercial contracts often contain arbitration clauses as an effective means of resolving conflicts swiftly. Arbitration can be expensive and is not a cost-effective solution to settle minor disputes, despite its benefits. As a result, clauses that mandate the parties file an arbitration request are appearing in more and more contracts. These prerequisites are expressed as "multitiered" and "escalation" clauses, which often ask for compromise and economically advantageous alternatives to zero-sum arbitration before proceeding with it.This tragedy has not only exacerbated existing issues but also brought about new ones that undermine the efficiency of arbitrary procedures. Instead, the lack of compliance with these rules is used by the parties to contest the arbitration, and in a few rare instances, internal courts have improperly interfered with awards. They do. This article's goal is to define the arbitration's procedural requirements and assess whether or not they are a matter of jurisdiction (an arbitration agreement is not enforceable until the necessary formalities are completed, the statute of the court is void, and the court cannot deal. with it). Until the subject of the fulfilment of the prior conditions is satisfied, when it is transferred to the centre of its authority).

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