SC: Amendments to Government Orders Must Be Construed Fairly to Prevent Hardship  ||  SC: Divorce Settlement Waiver Bars Revival of Monetary Claim under DV Act  ||  Supreme Court: Plaint Cannot Be Rejected Where Ad Valorem Court Fee Depends on Disputed Facts  ||  SC: Bail in Serious Offences like Murder Cases Must be Supported by Clear and Justifiable Reasons  ||  Gauhati HC: Legal Heir Not Made Party Can Challenge Ex-Parte Succession Certificate  ||  Allahabad HC: Hijab Not Essential Islamic Practice, Rejects Plea to Wear It With School Uniform  ||  Gauhati HC: 24-Hour Limit for Magistrate Production Starts From Initial Detention under NDPS Act  ||  Gujarat HC Orders Human Verification of AI-Generated Case Law in Tax Orders, Warns of Contempt  ||  Madras HC: Pending Domestic Violence Case Alone Cannot Curtail Husband’s Right to Travel Abroad  ||  Rajasthan HC: Son’s Coparcenary Claim Fails without Proof of Hindu Undivided Family    

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