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Para 9.9.2 - Dispute Exclusions | KartavyaDesk

Goods Manual

Original Rule Text

1. Any controversies or claims brought by a third party for bodily injury, death, property damage or any indirect or consequential loss arising out of or in any way related to the performance of this Contract (“Third Party Claim”), including, but not limited to, a Party’s right to seek contribution or indemnity from the other Party in respect of a Third-Party Claim. 2. Issues related to the pre-award tender process or conditions. 3. Issues related to ambiguity in contract terms shall not be taken up after a contract has been signed. All such issues should be highlighted before the contractor signs the contract. 4. Issues related to contractual action/ termination of contract etc., by the Procuring Entity on account of fraud, corruption, debarment of contractors, criminal or wilful negligence of the contractor etc. 5. Issues that are already under investigation by CBI, Vigilance, or any other investigating agency or government. 6. Provisions incorporated in the contract, which are beyond the purview of The Procuring Entity or are in pursuance of policies of Government, including but not limited to a) Provisions of restrictions regarding local content and Purchase Preference to Local suppliers in terms of the Make in India policy of the Government. b) Provisions regarding restrictions on Entities from Countries having land-borders with India in terms of the Government’s policies in this regard. c) Purchase preference policies regarding MSEs and Start-ups

What This Means

Para 9.9.2 of the Manual for Procurement of Goods, 2017 outlines specific types of disputes or issues that cannot be referred to conciliation (a form of alternative dispute resolution) after a contract has been signed. Essentially, it sets boundaries on what can be negotiated or challenged post-contract signing to ensure efficiency and prevent unnecessary delays. This rule aims to protect the government from frivolous claims and ensures that certain critical issues are addressed proactively before the contract is finalized. It affects both the procuring entity (government department) and the contractor, as it defines the scope of post-contract dispute resolution.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Third-party claims related to bodily injury, property damage, or consequential loss are excluded from post-contract conciliation.
  • •Pre-award tender process issues and ambiguities in contract terms cannot be raised after the contract is signed.
  • •Contractual actions like termination due to fraud, corruption, or negligence are excluded from conciliation.
  • •Issues under investigation by CBI, Vigilance, or other government agencies are not subject to conciliation.
  • •Provisions related to government policies like Make in India, restrictions on entities from bordering countries, and purchase preference policies for MSEs/Startups are excluded.

Practical Example

The Ministry of Textiles awarded a contract worth ₹50 Lakhs to 'WeaveWell Industries' for supplying handloom fabrics. After the contract was signed, a worker from WeaveWell Industries suffered an injury on-site, leading to a third-party claim for compensation. According to Para 9.9.2, this claim cannot be referred to conciliation. Similarly, if after signing the contract, WeaveWell Industries claims that there was an ambiguity in the tender document regarding the fabric specifications, this issue also cannot be raised for conciliation. However, if the Ministry decides to terminate the contract due to suspected fraudulent practices by WeaveWell, this termination action is also outside the scope of conciliation under this rule.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What does 'conciliation' mean in this context?▼
Conciliation is a form of alternative dispute resolution where a neutral third party helps the procuring entity and the contractor reach a mutually agreeable solution.
Why are pre-award tender issues excluded from post-contract conciliation?▼
To ensure that all concerns and ambiguities are addressed before the contract is finalized, promoting transparency and preventing disputes arising from unclear terms.
What happens if an issue arises that is excluded from conciliation under Para 9.9.2?▼
The issue may need to be resolved through other legal means, such as arbitration or court proceedings, depending on the contract terms and applicable laws.
Does this rule prevent the government from taking action against a contractor for fraud?▼
No, it does not. It simply means that the government's action (e.g., termination of contract) due to fraud is not subject to conciliation.
Are all types of disputes excluded from conciliation after the contract is signed?▼
No, only the specific types of disputes listed in Para 9.9.2 are excluded. Other disputes may still be eligible for conciliation, depending on the contract terms.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Para 9.9.2 of the Manual for Procurement of Goods, 2017, which of the following issues cannot be referred to conciliation after a contract has been signed?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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