Arbitration Against Government & PSU Contracts
TENDERS, BLACKLISTING & ARBITRATION · BHOPAL, SERVING ALL INDIA
Arbitration Against Government & PSU Contracts
Recover withheld payments, damages and dues from government departments and PSUs through arbitration. Most government contracts contain an arbitration clause — we use it to get you paid. Your first consultation is free.
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Core specialism
Blacklisting & tenders
Govt & PSU
Departments & boards
Pan-India
High Courts & tribunals
Using arbitration to resolve government contract disputes
Arbitration against government and PSU contracts is usually the fastest, most effective route to recover withheld payments and damages, because most such contracts contain an arbitration clause that keeps the dispute out of the ordinary courts. Invoking it correctly is what turns a stalled dispute into an enforceable award.
We handle the process end to end — invoking the arbitration clause, appointing the tribunal, presenting your claim for withheld bills, EMD, security and damages, and then enforcing the award so the money actually reaches you. Where no clause exists, we advise the appropriate alternative proceeding.
Who this is for
- Contractors owed withheld running or final bills by a department or PSU.
- Firms whose EMD or security deposit is stuck.
- Parties in a contract dispute with an arbitration clause.
- Contractors needing an award enforced against a government body.
What our arbitration work covers
We run the full arbitration process against departments and PSUs, end to end:
- Invoking the arbitration clause and issuing the notice of arbitration.
- Appointment of the arbitral tribunal, including court applications where the other side delays.
- Claims for withheld running and final bills, with interest.
- Claims for EMD, security deposit, and damages for wrongful acts.
- Defending counter-claims raised by the department.
- Enforcement and execution of the award to realise the money.
Arbitration under the 1996 Act — how it works
Arbitration in India is governed by the Arbitration and Conciliation Act, 1996. Most government and PSU contracts contain an arbitration clause, and once it is validly invoked, a neutral tribunal — rather than the ordinary courts — decides the dispute. The Act provides for court assistance in appointing arbitrators where a party stalls, and prescribes timelines intended to keep the process moving.
An arbitral award is final and binding, subject only to limited grounds of challenge, and is enforceable as a decree of the court. That enforceability is what makes arbitration such an effective recovery tool against a department that withholds legitimate dues — we pursue the matter through to execution so that a favourable award actually reaches your account.
How we run your arbitration
1. Claim review
We assess the contract, the clause and the amounts due.
2. Invoke arbitration
We issue notice invoking the clause and constitute the tribunal.
3. Present the claim
We plead and argue your claim for payments, EMD and damages.
4. Enforce the award
We execute the award so the dues actually reach your account.
Arbitration against government — frequently asked questions
Why is arbitration used for government contract disputes?
Because most government and PSU contracts contain an arbitration clause, making it the primary route to resolve payment and performance disputes — and it is usually faster than ordinary courts. A neutral tribunal decides the matter, and the award is enforceable.
Can I recover payments and EMD a department is withholding?
Yes. Withheld running bills, final bills, earnest money and security deposits are recoverable, usually by invoking the arbitration clause in your contract. We issue notice, pursue arbitration, and enforce the award to actually get you paid.
What if my contract has no arbitration clause?
We advise the appropriate alternative — a civil or commercial suit, or other proceedings depending on the contract and dues. We choose the route most likely to recover the money efficiently.
How is an arbitral award enforced against a PSU?
An award is enforceable like a court decree. Where a government body delays payment, we take execution steps to realise the award, including attachment where necessary.
How long does an arbitration against a government body take?
It varies with the complexity and the department’s conduct, but the 1996 Act prescribes timelines designed to keep arbitration faster than ordinary litigation. We push the process actively and give you a realistic timeline for your specific claim.
Can a government body refuse to appoint an arbitrator?
If the department delays or refuses to cooperate in constituting the tribunal, we apply to the appropriate court to appoint the arbitrator under the Act, so the arbitration proceeds regardless of the other side’s tactics.
Tell us about your government contract dispute
Share the contract and the dues — we will advise the fastest route to recovery.
Recover what the department owes you
Talk to our team for a free assessment of your arbitration or recovery matter.
