Why in news?  Centre launched Vivad se Vishwas 2.0 scheme to settle contractual disputes as announced in Union Budget 2023

Highlights:

CONTRACTUAL DISPUTE

• What – Disputes between the parties to any contract regarding any clause of the contract
• What causes the dispute – Breach of contract, non-performance, delay, force majeure
• A look on data –
  • 14 lakh cases were pending in various courts related to public contracts worth Rs 9.38 lakh crore (Niti Aayog)
  • Cases accounted for about 46% of all pending cases in courts and about 5% of India’s GDP. Resolving these cases could potentially unlock Rs 5.83 lakh crore worth of investments
• Impact
  • Legal Costs
  • Delay in Project Completion
  • Financial Loss
  • Damage to Reputation
  • Strained Relationships
• Challenges
  • Lack of awareness and trust
  • Lack of adequate infrastructure
  • Lack of uniformity and consistency in the interpretation and application of the laws