Date – 17/05/2018
Cabinet approves strengthening commercial disputes resolution mechanism of CPSEs
– Union Cabinet has approved strengthening commercial disputes resolution mechanism of Central Public Sector Enterprises (CPSEs) inter se and also between CPSEs and other Government Departments and Organizations. The Cabinet decision is based on recommendations of Committee of Secretaries
– The new strengthened mechanism puts in place institutionalized mechanism within Government for speedy resolution of commercial disputes of CPSEs, without matter being referred to the Courts of law. It consists of new two-tier mechanism to resolve commercial disputes between CPSEs outside Courts law.
– It replaces existing Permanent Machinery of Arbitration (PMA) mechanism and excludes disputes concerning Railways, Income Tax, Custom and Excise Departments from its ambit. It will promote equity through mutual and collective efforts to resolve commercial disputes thereby reducing number of litigations regarding commercial disputes in Court of Law and also avoid wastage of public money.