The Union Finance Ministry has come up with a draft scheme known as Vivad se Vishwas II (Contractual Disputes) scheme, with the aim of resolving pending disputes related to government contracts. The scheme aims to provide an opportunity to resolve disputes through a mechanism that is cost-effective, time-efficient and less cumbersome. The draft scheme has been issued to seek suggestions and feedback from stakeholders, and it is likely to be operational soon.
Domestic Arbitration Cases
The Vivad se Vishwas II (Contractual Disputes) scheme applies only to domestic arbitration cases and will be implemented through the Government e-Marketplace. This is a significant step in making the resolution of disputes related to government contracts more streamlined and efficient. The scheme provides a platform to resolve disputes that are pending in various courts and tribunals, thereby reducing the burden of litigation on the government as well as on businesses.
Settlement Amount
The settlement amount under this scheme will vary based on the status of the dispute. If a court or arbitral order has been issued, the settlement amount will be equal to 80% or 60% of the amount awarded by the court or tribunal. In case the dispute involves a contract that has been stopped or terminated, the settlement amount will be 30% of the net claim amount. If the contract is still ongoing, the settlement amount will be 20% of the net claim amount. This provision is aimed at encouraging parties to resolve their disputes in a cost-effective manner.
Advantages
The Vivad se Vishwas II (Contractual Disputes) scheme offers several advantages to parties involved in government contracts. Firstly, it provides a platform for resolving disputes in a cost-effective and time-efficient manner. Secondly, it helps reduce the burden of litigation on the government as well as on businesses. Thirdly, it provides an opportunity to settle disputes that are pending in various courts and tribunals, thereby reducing the burden of litigation. Fourthly, it provides a platform for resolving disputes related to government contracts, thereby making the process more streamlined and efficient.
Last Modified: February 20, 2024