Cabinet Nod for Out-of-court Dispute Resolution for PSUs

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Cabinet Nod for Out-of-court Dispute Resolution for PSUs

The Cabinet approved a mechanism within the government for speedy resolution of commercial disputes of central public sector enterprises without cases going to courts.




A new two-tier mechanism will be put in place of the existing Permanent Machinery of Arbitration mechanism to resolve such commercial disputes. At the first level (tier), a committee comprising of secretaries of the relevant administrative and secretary department of legal affairs will look at the dispute.At the second level (tier), in case the dispute remains unresolved, it will be referred to the Cabinet Secretary, whose decision will be final and binding on all concerned.

For the prompt disposal of disputes, a time schedule of 3 months at the first level has been prescribed. The government said it would reduce “the number of litigations regarding commercial disputes in Court of Law and also avoid wastage of public money.




Among other decisions, the Cabinet also gave the go-ahead to a new AIIMS at Deoghar in Jharkhand, a Central University in Andhra Pradesh, extension of Delhi Metro further into Noida and a freight village along Delhi-Mumbai industrial corridor in Haryana.

The Economic Times, New Delhi, 17th May 2018

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