Delhi Govt Announces Deletion Of Arbitration Clauses From All Future PWD Contracts
The PWD of the Government of National Capital Territory of Delhi by notification dated April 21st, 2025, has announced the deletion of Arbitration clause from future contracts. The notification stated that the Arbitration Clause (Clause 25: Settlement of Disputes & Arbitration), which deals with the settlement of disputes by way of arbitration, shall not be a part of the GCC in...
The PWD of the Government of National Capital Territory of Delhi by notification dated April 21st, 2025, has announced the deletion of Arbitration clause from future contracts.
The notification stated that the Arbitration Clause (Clause 25: Settlement of Disputes & Arbitration), which deals with the settlement of disputes by way of arbitration, shall not be a part of the GCC in all future contracts awarded by the PWD.
The notification signed by Ruchika Katyal, Special Secretary (PWD), has substituted the arbitration clause with the following clause: “Any disputes arising between the parties to this agreement/contract shall be subject to the exclusive jurisdiction of Courts in Delhi only.”
The said notification can be viewed to be in line with the Office Memorandum, titled “Guidelines for Arbitration and Mediation in Contracts for Domestic Public Procurement,” issued by the Ministry of Finance, dated June 03rd, 2024, which showcased a paradigm shift in the approach of the government with respect to the settlement of disputes by way of arbitration.