Arbitration is all set to be replaced by mediation in most government and quasigovernment contracts as the standard mechanism for resolution of disputes. The Procurement Policy Division of the Department of Expenditure, Ministry of Finance, issued a notification to that effect on June 3, 2024, which also contains a broad outline of the process of mediation.
The notification is applicable to 'domestic' contracts of the central ministries and departments, their attached and subordinate offices, autonomous bodies, central public sector enterprises, public sector banks, government companies, and financial institutions. By implication, it does not apply to contracts involving foreign companies which are not based in India. It is not immediately clear whether foreign companies operating from India are also exempted from its application.
The Ministry of Defence (MoD), which is one of the biggest spenders, needs to watch out. During the current financial year it will spend approximately 3 lakh crore on procurement of goods and services and civil works via thousands of contracts and supply orders place by a vast multitude of functionaries down the line from New Delhi to the farthest corners of the country and beyond.
Coming, as it does, five years after the enactment of the New Delhi International Arbitration Act, 2019, which aimed at making India a hub for international arbitration, the latest move, though limited to domestic contracts, has shaken the very foundation of arbitration as an efficacious 'alternative dispute resolution' mechanism, free from the rigours of judicial adjudication of disputes.
This story is from the August 2024 edition of Geopolitics.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2024 edition of Geopolitics.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
NEW MANTRA FOR DISPUTE RESOLUTION
AMIT COWSHISH explains why the Ministry of Defence (MOD), which is one of the biggest spenders, needs to watch out for the latest mediation rules.
NEW WAVE TERRORISM IN JAMMU & KASHMIR
KARAN KHARB argues that Pakistan's continued use of proxy war tactics against India, particularly in Jammu and Kashmir, poses a severe threat to national security. He advocates for a shift from a reactive to a proactive approach in counter-terrorism efforts, emphasizing the need for a comprehensive review of military strategies and a coordinated national policy to address both external and internal security challenges effectively.
INDIAN NAVY'S PROJECT-751 - GERMAN TKMS LEADS SPANISH NAVANTIA AFTER FIELD TRIALS FOR AIP-SUBMARINE DEAL
German submarine-builder ThyssenKrupp (TKMS) and India's Mazagaon Dockyard Limited (MDL) have emerged as leaders in the Indian Navy's Project-751, which aims to build six submarines with Fuel Cell Air-Independent Propulsion (AIP) and Lithium-ion batteries. Following successful field trials, TKMS and MDL have gained an edge over competitors by demonstrating their proven AIP technology and advanced submarine design tailored to the Indian Navy's needs.
VIKSIT BHARAT FROM A DREAM TO REALITY
The article explores India's ascent as a global influencer, emphasising its strategic advancements in foreign policy, defence, and economic growth. It also highlights India's challenges in achieving sustainable development and strengthening internal security. Adopting a forward-looking approach, the article envisions India's rise as a major economic power and a key player in global stability, as outlined by LT. GEN. A.B. SHIVANE (RETD.).
WILL MODI APPLY THE LESSON LEARNT FROM KOREA IN UKRAINE?
Speculation around Prime Minister Narendra Modi's possible visit to Ukraine raises questions about India's role in mediating peace between Russia and Ukraine. Drawing from its experience during the Korean War, India may seek to leverage its strategic neutrality to foster dialogue in a conflict where China and Turkey have also shown interest, opines PRAKASH NANDA.
UGVS: THE NEXT DIMENSION OF WARFARE
With the rest of the world developing unmanned ground vehicles at a breakneck speed, it is time for India to join the bandwagon at the earliest.
SUPERSONIC DESTROYER
The BrahMos programme has filled a critical gap in the Indian armed forces' missile inventory and continues to attract strong export interest, writes ATUL CHANDRA.
POLICE MODERNISATION: AN URGENT NEED OF THE HOUR
India is facing many internal security threats, and it is time to reshape the strategic dynamics by modernising the police forces.
FUTURE FIGHTER
FIA 24 provided important insights into the Global Combat Air Programme, which will redefine the future of air combat, reports MIKE RAJKUMAR.
FILLING THE GAP
A new Medium Transport Aircraft is essential for the IAF, but it will have to compete with other pressing programmes fighting for limited budgetary resources, analyses ATUL CHANDRA.
