SC: Confirmation of an Auction Sale Does Not Bar Judicial Scrutiny of Reserve Price Valuation  ||  Supreme Court Sets Aside Conviction of Four Men in a 1998 Gang Rape Case  ||  Supreme Court: Privy Purse Privileges of Princely Rulers are Not Enforceable Legal Rights  ||  Delhi HC: Repeated Court Summons May Distress and Re-Traumatize Child Sexual Assault Victims  ||  Jammu and Kashmir High Court: Labeling Someone as a Terrorist Associate Amounts to Defamation  ||  Delhi HC: Setting Aside or Altering a Judge’s Order by a Higher Court Doesn’t Affect Their Integrity  ||  Delhi High Court: Accused Cannot be Faulted For Smart Replies; Interrogator Must be Sharper  ||  Supreme Court: Belated Jurisdictional Challenge Impermissible After Participation in Arbitration  ||  Supreme Court: Failure to Prove Specific Overt Acts of Each Unlawful Assembly Member Not Fatal  ||  Supreme Court: Parental Salary Alone Cannot Determine OBC Creamy Layer Status    

Government proposes quick settlement of contractual disputes to promote ease of doing business - (08 Feb 2023)

Commercial

The Ministry of Finance circulated a draft scheme. The government intends to bring one time settlement scheme called “Vivad se Vishwas II (Contractual Disputes)” to effectively settle pending disputes. The scheme is aimed at bringing quick finality to certain contractual disputes in which Government of India or its agencies is a litigant. The draft scheme has been framed in accordance with the announcement made by the Union Finance Minister in the Union Budget 2023-24.

Special efforts are necessary to clear the backlog of old disputes and litigation. Such cases are not only holding back fresh investment but are also reducing the ease of doing business with the Government. The scheme will apply to disputes where one of the parties is either the Government of India or its following bodies:

a. All Autonomous Bodies of the Government of India;

b. Public sector banks and public sector financial institutions;

c. All Central Public Sector Enterprises;

d. Union Territories, National Capital Territory of Delhi and all agencies/ undertakings thereof; and

e. All organisations, where Central Government like Metro Corporations, where Government of India has shareholding of 50%; however, these bodies can opt out of the scheme at their discretion, with approval of the Board of Directors.

The Scheme will be applicable to all contractors/ suppliers who wish to participate. In case Central Public Sector Enterprises (CPSEs) etc. are the contractors/ suppliers in a particular contract, they are also eligible to submit their claims under the scheme. The Scheme proposes a graded settlement terms depending on pendency level of the dispute. It is proposed to cover only for cases involving domestic arbitration and cases under international arbitration are not eligible to be settled under this scheme. The scheme will be implemented through Government e-Marketplace (GeM), which shall provide an online functionality for the same. The draft scheme also contains a draft settlement agreement between the litigating parties to bring finality to the contractual dispute settlement.

Tags : CONTRACTUAL DISPUTES   QUICK SETTLEMENT   DISPUTES  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved