Government announces “Vivad Se Vishwas II” to resolve contractual disputes

Press Release, Dated 08.02.2023

The Hon’ble FM in her budget speech announced that to settle contractual disputes of government and government undertakings a voluntary settlement scheme with standardized terms will be introduced. Therefore, the MoF circulated a draft scheme for consultation with stakeholders. It is aimed at bringing quick finality to certain contractual disputes in which Government of India or its agencies is a litigant. The draft scheme is available on Department of expenditure’s website (doc202328158601.pdf (pib.gov.in)

Some of the salient features of the proposed scheme are as under:

• The scheme will apply to disputes where one of the parties is either the Government of India or its agencies.
• Disputes, where claims are raised against procuring entities as above along with some other party (State Government or private party), shall not be eligible under the scheme.
• Disputes having only financial claims against the procuring entities will be settled through this scheme.
• The Scheme proposes 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.

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