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NHAI forms 2 panels to speed dispute resolution
The National Highways Authority of India (NHAI) has come up with an alternative dispute resolution mechanism to find a way out of the nearly 280 pending claims worth Rs 43,000 crore on its hands, as well as future cases.
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It has set up two panels of six independent experts, including a former central vigilance commissioner (CVC) and a former Lokayukta, for conciliation and settlement of disputes. The decisions of the panels – one headed by former CVC Pradeep Kumar and the other led by former Allahabad high court judge Justice I P Vasishth – will be binding on NHAI and contractors. The panels also have experts from the corporate world, including former managing director of Maruti Suzuki (India) Jagdish Khattar.
The NHAI has notified the guidelines for the new mechanism, wherein neither the contractor nor the authority would have to engage any advocate. NHAI chairman Yudhvir Singh Malik told TOI, “The intention behind the policy is quick amicable settlement of disputes, avoiding unnecessary litigation, and playing a constructive role in completion of road projects.” In an open letter to contractors, the NHAI chief has appealed to them to avail of the option.
New cases will be referred to the expert panels only after both the NHAI chairman and the chief of contractor board of directors exhaust the scope of conciliation and settlement.
But to enable the expert panels to take up disputes which have already reached courts or tribunals, the private player will have to explicitly submit it to the court or tribunal to put the hearing in abeyance.
“Now we have to see how the industry is taking keen interest in quick resolution of disputes. We have taken the required step to minimise the number of disputes reaching courts and tribunals,” an NHAI official said.
The number of disputes is likely to swell as more projects get completed.
The PMO had been pushing for quick resolution, within a stipulated time frame, of disputes, which have led to blocking of funds for contractors even after completion of works. Coby Fleener Jersey
