Vivad se Vishwas – II
Source: PIB
GS II: Governance
Overview
- About Vivad se Vishwas – II
Why in News?
The Department of Expenditure, Ministry of Finance, has launched the scheme Vivad se Vishwas II – (Contractual Disputes), to effectively settle the pending contractual disputes of government and government undertakings.
- The scheme was announced in the Union Budget 2023-24 by the Union Finance Minister.
About Vivad se Vishwas – II
The Department of Expenditure, Ministry of Finance, had issued an order on 29.05.2023 indicating detailed guidelines of the scheme.
To settle contractual disputes of government and government undertakings, wherein arbitral award is under challenge in a court, a voluntary settlement scheme with standardized terms will be introduced. This will be done offering graded settlement terms depending on pendency level of the disputes
- It is a voluntary settlement plan to address ongoing legal issues between government organisations.
- It is intended especially for cases in which the arbitral award is being contested in court.
- An arbitration award is a decision that gives the arbitration process closure.
- The plan calls for the introduction of standard terms and the provision of graded resolution choices based on the amount of dispute pendingness.
- The Scheme intends to create a platform for quickly and effectively resolving contractual disputes
- This simplicity of doing business with the government and attracting new investments to the nation.
- The Government e-Marketplace (GeM) portal’s online capabilities will be used to implement it.
- The scheme will apply to all domestic contractual disputes where one of the parties is either the Government of India or an organisation working under its control.
- Companies like metro companies, in which the Centre has 50% ownership, are free to decide whether or not to participate in the programme.
- Court Awards passed on or before 30.04.2023 the settlement amount offered to the Contractor will be up to 85% of the net amount awarded/ upheld by the court.
- Arbitral Awards passed on or before 31.01.2023 settlement amount offered is up to 65% of the net amount awarded.
Summary as Infographics
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