Government of India Drives Enforcement of Contracts and Conciliation Mechanism

In order to lay emphasis on Enforcement of Contracts and Conciliation Mechanism, NITI Aayog hasconstituted two Task Forces. The Task Force for Enforcement of Contracts will give its recommendation for a policy framework for Enforcement of Contracts andthe Task Force on Conciliation Mechanism will give its recommendation for an effective Conciliation Mechanism.

The Task Force for Enforcement of Contracts has been constituted with the participation from key Ministries/Departments of the Government of India and certain State Chief Secretaries.

The Vice Chairman, NITI Aayog will be the Chairman of the Task force and CEO, NITI Aayog will be the Member Secretary of the Task Force. Secretary, DPIIT, Secretary, DEA, Secretary, Revenue, Secretary, Department of Commerce, Chief Secretary (Maharashtra), Chief Secretary (Gujarat), Chief Secretary (Andhra Pradesh), Chief Secretary (Tamil Nadu), Chief Secretary (Uttar Pradesh) and any other member(s) as may be co-opted will be Member of the Task Force. The Task Force will submit its report within 6 (six) months of its constitution.

Terms of Reference of the Task Force will be as follows:

1. Constitution and operationalization of adequate number of Dedicated Commercial Courts with requisite infrastructure in major towns/clusters at the district level in all States to exclusively deal with commercial cases.
2. Examination of relevant provisions of the Commercial Courts Act, 2015 on its jurisdiction over different categories of cases and pecuniary jurisdiction of Commercial Courts.
3. Usage of Case Information Software in commercial cases for random and automated assigning of cases and eliminating human intervention.
4. Usage of information technology at different level of proceedings.
5. Role of Pre-Institution Mediation & Settlement as an Alternative Dispute Resolution Mechanism to take place in all cases at any stage.
6. Timelines for closure of mediation, settlement and disposal of cases by Commercial Courts.
7. Information dissemination through regular uploading of granular data on the websites of Commercial Courts relating to commercial cases.
8.  Any other measure.

In order to facilitate speedy resolution of contractual disputes between Government Entities and private investors/contractors inter alia to augment ease of doing business, it has been decided to constitute a Task Force with participation from key Ministries/Departments of Government of India to recommend an effective Conciliation Mechanism.The Conciliation Mechanism Task Force has been constituted with participation from key Ministries/Departments of Government of India.

The CEO, NITI Aayog will be the Chairman of the Task force. Secretary, DPIIT, Secretary, DEA, Secretary, Department of Legal Affairs, Chairman & CEO, Railway Board, Secretary, MoRTH, Secretary, Civil Aviation, Secretary, Power, Secretary, MNRE, Chairman, NHAI and any other member(s) as may be co-opted will be Member of the Task Force. The Task Force will submit its report within 3 (three) months of its constitution.

Terms of Reference of the Task Forcewill be as under:

1. To develop and formulate guidelines providing for an effective Conciliation Mechanism,for speedy settlement/resolution of disputes arising out of contracts between the Government (Ministries, CPSEs) and private contractor/concessionaire.
2. To suggest policy, procedural and institutional measures therein on related matters of applicability, conciliation process etc.
3. To examine relevant provisions of the Arbitration and Conciliation Act, 1996 and the conciliation mechanism prescribed thereunder.
4. Any other measure.

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DS /AKJ

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