Tewari also sought to know the rationale behind the guidelines as well as details of government expenditure on litigation where the primary mode of dispute resolution is arbitration.
The Ministry stated that the guidelines were based on ‘unsatisfactory experience of arbitration’ where the government was a party. It added that the guidelines are flexible and permit arbitration for high value disputes after application of mind by the Ministry or the undertaking concerned.
Further, the Ministry stated that expenditure details as sought were not available. However, it cited a sample study of National Highways Authority of India (NHAI) and National Thermal Power Corporation (NTPC) showing that 60% of arbitration awards are challenged in courts.
Source: Barandbench
