Delhi PWD Removes Arbitration Clause From Future Contracts, Opts for Litigation

Delhi Public Works Department (PWD) has removed the arbitration clause from all future contracts, mandating that disputes be resolved exclusively through Delhi courts.

An office order dated April 21 deleted Clause 25 of the General Conditions of Contract, which provided for "Settlement of Disputes & Arbitration". 

The move aligns with the Union Finance Ministry’s 2024 guidelines restricting arbitration in public contracts due to concerns over delays and inefficiencies.

However, legal experts, including Senior Advocate Gourab Banerji, criticised the decision, warning it undermines India’s arbitration framework and risks overburdening the judiciary with procurement-related litigation.