Now, new norms to fix disputes among CPSEs

Resolution Platform

- AMRCD aims at resolving disputes among CPSES

- However, disputes relating to Railways, I-T, Customs & Excise excluded

New Delhi: The central government has chalked out a new mechanism to resolve commercial disputes involving Central Public-Sector Enterprises (CPSEs). This would cover (i) disputes among CPSEs, and (ii) disputes between CPSEs, on the one hand, and government departments and organizations, on the other.

The Administrative Mechanism for Resolution of CPSE Disputes (AMRCD), which is decentralized in nature, has replaced the erstwhile Permanent Machinery of Arbitration (PMA). The latter came into being on May 22, 2018.

Any dispute or difference relating to the interpretation and application of the provisions of commercial contracts between and among CPSEs, port trusts, government departments and organizations shall be taken for resolution through the AMRCD only, official sources told Bizz Buzz.

However, this would exclude the disputes relating to the Railways, Income-Tax, and Customs & Excise departments, the sources added.

No appeals are to be made to the Cabinet Secretary in such matters, including those in which the sole arbitrator has passed an order before the date of notification of AMRCD, unless the resolution of the dispute has been considered at the level of the administrative ministry.

At the first level or tier, the disputes shall be arbitrated upon by a committee comprising: the Secretaries of the administrative ministries and departments to which the disputing CPSEs or parties belong; Secretary, Department of Legal Affairs; and Secretary, Department of Public Enterprises (DPE).

In case of a dispute between a CPSE and a State government department or organization, the matter shall be arbitrated through a committee comprising: Secretary of the Ministry/Department of the Union to which the CPSE belongs; Secretary, Department of Legal Affairs; and a senior officer (not below the rank of Secretary in the state government) nominated by the Chief Secretary of the state concerned.

In case the dispute remains unresolved even after consideration by the above committees, the same will be referred through the DPE at the second level or tier to the Cabinet Secretary whose decision will be final and binding on all.

Any party aggrieved with the decision of the committee at the first level may prefer an appeal before the Cabinet Secretary at the second level within 30 days from the date of receipt of decision of the committee at the first level through its administrative ministry department on the DPE web-portal.