Govt tells PSUs to settle disputes in time


Observing that there is a “considerable delay” in resolution of disputes, government instructed central public sector enterprises (CPSEs) to “strictly adhere the timeline” stipulated for their settlement. The Department of Public Enterprises directed the Administrative Ministries/Departments to issue instructions in this regard to the CPSEs under them. “It has been observed that there is a considerable delay in submission of counter claim/clarifications/requisite documents whenever desired from the parties to the dispute, resulting in considerable delay in resolution of the dispute and giving awards. “All Administrative Ministries/Departments are, therefore, requested to issue necessary instructions to the CPSEs to strictly adhere the timeline and to submit counter claim/clarifications/requisite documents within the stipulated time as fixed by PMA,” the Department of Public Enterprises said. With a view to settle disputes relating to commercial contracts between Central Public Sector Enterprises (CPSEs) or between the CPSEs and Government Departments or Ministries or Agencies through a permanent machinery, the Government, in 1989, created a Permanent Machinery of Arbitration (PMA) in the Department of Public Enterprises. It provides that disputes or differences relating to interpretation or application of provisions of a commercial contract signed between CPSEs, banks, Port Trust, etc. or between the CPSE and a Government Ministry/Department (except dispute concerning the Railways, Income Tax, Custom and Excise Department) shall be referred for arbitration to the PMA in Department of Public Enterprises. “The objective ot putting in place such a mechanism is not only to curb the unnecessary Government litigations before the courts of law or to reduce avoidable expenditure on this account, but also to have an institutionalized system of arbitration for expeditious settlement of disputes between the Government sector agencies,” Department of Public Enterprises said.