Dispute Resolution Dialogues: Session 6 - PSU Disputes and the Fear of Vigilance

In the sixth Dispute Resolution Dialogue, TrustBridge hosted Madhavi Divan, Senior Advocate at the Supreme Court of India, and Dr. Prashant Narang, Deputy Director of Research and Programs, to discuss persistent challenges in PSU dispute resolution. Ms. Divan flagged some structural flaws in arbitration, like fragmented disputes, dysfunctional virtual hearings, and declining professionalism, while warning that judicial delays under Sections 34 and 37 and inconsistent rulings erode confidence in the system. Dr. Narang pointed to PSUs’ tendency to contest nearly every adverse award, driven by a “fear of vigilance” rather than commercial logic, alongside systemic weaknesses like poor legal capacity and contract drafting. He proposed reforms including safe harbour mechanisms, accountability under Section 31A, and institutionalised ADR, while noting recent government initiatives. Both speakers stressed that unless PSUs balance caution with pragmatism, litigation will continue to drain public resources and slow India’s arbitration ambitions. At TrustBridge Rule of Law Foundation, we believe India’s path to sustainable and inclusive economic growth requires a fair, predictable and efficient legal and regulatory framework, rooted in a robust rule of law. 🔔 Subscribe to our YouTube channel and follow us on LinkedIn: / trustbridge-foundation #Arbitration #PSUDisputes #DisputeResolutionDialogues #TrustBridgeRuleOfLawFoundation #EaseOfDoingBusiness #LegalTalk #Law