Money Wasted On Public Litigation

Money Wasted On Public Litigation


Arbitration is a form of alternate dispute resolution (ADR) is a way to resolve disputes outside the courts. The parties to a dispute refer it to arbitration, which means that the dispute will be decided by one or more persons (the “arbitrators”, “arbiters” or “arbitral tribunal”), and the parties agree to be bound by the arbitral decision (the “award”).  An arbitrator is a third party who reviews the evidence in the case and imposes a decision that is legally binding on both sides and enforceable in the courts.

Rule of Court

Courts adopt certain set of procedures/regulations, which is to be followed strictly by the Lawyers of the parties concerned, on issues concerning the jurisdiction of those courts.  Many states have rules of court state-wide.  Local rules embrace the procedures for – time allowed to file the papers/ documents, fees for filing various documents, and other vital matters.  These rules normally are violated or ignored at the peril of the client and his/her/its counsel.


The Supreme Court has observed that Public sector institutions enter in to prolonged litigation and spend considerable sums of public money in cases which should have been adjusted by conciliatory and wise attitudes.  This the Supreme Court has observed in the judgement of Misra & Co VS Damodar Valley Corporation (DVC).

In the above case, an application for arbitration was moved in 1986, the award was made in 1991, and the court made it the rule of the court soon after.  But DVC did not pay the due amount and went on raising objections for several years.  Explaining the delayed tactics of DAC which is a public sector unit, the court advised that the contractor who built an administrative block for the corporation in 1983 deserved compensation for the delays in execution of the arbitration decree.

The court has granted six weeks to DAC to come up with a conciliatory proposal for paying the compensation.

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