An Analysis Of The Government’s Shift In Arbitrating Public Procurement Contracts
- IJLLR Journal
- 2 hours ago
- 1 min read
Adarsh A S, LLM, National Law School of India University, Bangalore
ABSTRACT
The article critically examines the Government of India’s decision to move away from arbitration to mediation in public procurement contracts through the Ministry of Finance’s Notification dated 03 June 2024. The paper analysis this through the eyes of pro arbitration jurisprudence put forth within the Indian legal system by various amendments to the Arbitration and Conciliation Act, 1996 and Judicial activism in this sphere through cases such as MTNL v Canara Bank and Vidya Drolia v Durga Trading Corporation. The paper also analyses its effects comparing it with the new Mediation Act, 2023. The article evaluates the reasoning given by the government to make this change such as cost, delay, finality and administrative ineffectiveness. The article argues that such a shift; while intending to reduce legitimate concerns it risks judicial backlogs, bureaucratic hurdles and reduces investor confidence. The articles conclude by putting for a more balanced approach and recommends a Med – Arb clauses and carve outs to increase efficiency and accountability that promotes India’s goal to remain a global arbitration hub.
