Voluntary Settlement Scheme:
The Union Budget 2023 announced a “voluntary settlement scheme with standardised terms” to amicably end commercial/contractual disputes concerning government undertakings in which arbitral awards are under challenge.
- The budget 2023-24 has proposed a scheme for settling contractual dispute named Vivad se Vishwas II (Settling Contractual Disputes).
- Voluntary settlement scheme introduced to settle contractual disputes of government and government undertakings; wherein arbitral award is under challenge in a court.
- This will be done by offering graded settlement terms depending on pendency level of the dispute.
- Under the scheme, voluntary option is given to the private sector to come into the scheme or not.
