Vivad Se Vishwas 2 Scheme For Dispute Resolution

Vivad Se Vishwas 2 Scheme intends to equip a useful and standardized tool for settling contractual disputes, to reduce the limitation on the legal system, and propose a business-friendly environment through a voluntary Settlement system. The union  Finance Minister, Smt. Nirmala Sitharaman announced the Vivad Se Vishwas 2 Scheme during the Union Budget 2023-24. This scheme is also known as the Contractual Disputes scheme.

Objective

Vivad Se Vishwas 2 Scheme focuses on solving the contractual disagreements of the government with the private parties to clear the litigation backlogs which improves the ease of doing business.

The deadline for submitting all the claims under the Vivad Se Vishwas 2 scheme is on or before October 31, 2023. This will apply to all domestic disputes, where one party is either the Government of India or any firm under the control of the government.

Under the new voluntary scheme, the central government aims to resolve 500 cases approximately which involve rupees one trillion.

This settlement scheme should cover cases that were passed by April 30, 2023, based on the court order and the arbitral order that was given by January 30, 2023.

The court order that is passed on or before April 30, 2023, under this scheme, the settlement order will be given up to 85 percent of the amount that is granted or upheld by the court.

To facilitate a transparent and smooth process of the scheme, a dedicated web page “Vivad se Vishwas-2 (Contractual Disputes)”  was created by the government marketplace (GeM) for implementation. All eligible claims can be processed by the GeM platform, to ensure expeditious resolution and the settlement process.

Benefits

Vivad Se Vishwas 2 Scheme has a lot of benefits for the stakeholders as follows:

Quick Resolution

Vivad Se Vishwas 2 Scheme delivers a standardized settlement method that gives a structure for the stakeholders. This scheme ensures quick resolution for the contractual disputes that are pending or else those cases would linger in the court for years. This in turn reduces the limitation of the stakeholders ensuring progress in businesses.

 

Relieve the burden of Litigation

Vivad Se Vishwas 2 Scheme mainly aims to alleviate the obligation on the legal systems by stimulating parties to resolve the conflicts voluntarily, which in turn reduces the workload of courts.

 

Business – Friendly atmosphere

The Vivad Se Vishwas 2 Scheme provides a voluntary settlement mechanism that encourages an atmosphere that is prone to business, motivating investment and development in the country.

Financial stability

Vivad Se Vishwas 2 Scheme furnishes concessions for the contractors in the form of promising settlement amounts, which permit them to regain a significant percentage of the net amount rewarded or maintained by the court.

Vivad Se Vishwas 2 Scheme, delivers standardized methods, and also graded settlements will be provided. This depends on the grade of the pendency of the conflict.

Vivad Se Vishwas 2 Scheme motivates fresh investments in the government, enlarging business with the government. 

 Let’s conclude with an example: Government-held corporations such as the National Highways Authority of India (NHAI) and  Oil and Natural Gas Corporation (ONGC) had multiple conflicts with private contractors which were settled under the Vivad Se Vishwas 2 Scheme since that was keeping back fresh investments.