Advocates appeared:
For the Petitioner(s): Mr. Pranab Kumar Mullick, AOR Mrs. Soma Mullick, Adv. Mr. Sebat Kumar Deuria, Adv.
For the Respondent(s): Ms. Ekta Choudhary, AOR Mr. Ayush Kumar, Adv. Mr. Anand Krishna, Adv. Ms. Rushali Sikand, Adv. Mr. Siddhartha Chowdhury, AOR

The AMRCD (Administrative Mechanism for Resolution of CPSEs Disputes) is a structured framework established by the Government of India to facilitate the resolution of disputes among Central Public Sector Enterprises (CPSEs). Its primary purpose is to provide a formal, streamlined process for resolving disagreements related to the interpretation and application of commercial contracts between CPSEs, or between CPSEs and government departments/organizations, excluding disputes related to Railways, Income Tax, Customs, and Excise Departments (!) .

However, its applicability is limited to disputes concerning the interpretation and implementation of contractual provisions between CPSEs and does not extend to disputes arising from other types of agreements or rights, such as those related to security interests or claims over assets outside the scope of commercial contracts (!) .

In the context of disputes between banks, financial institutions, or other entities concerning security interests or claims over assets, the AMRCD Memorandum is generally not the appropriate mechanism. Such disputes are primarily governed by the statutory provisions of the SARFAESI Act, which prescribes specific procedures, including arbitration under Section 11 of the SARFAESI Act, for resolving inter-se disputes related to securitization, reconstruction, or non-payment of dues (!) (!) .

Therefore, while the AMRCD provides a specialized process for resolving certain inter-CPSE disputes, it does not replace the statutory arbitration provisions under the SARFAESI Act for disputes between financial institutions or secured creditors over security interests or claims. The statutory framework, including Section 11, creates a legal fiction of mutual consent to arbitration, which is deemed to exist among the specified parties for disputes falling within its scope, irrespective of whether a formal arbitration agreement exists (!) (!) .

In summary, the AMRCD is a dispute resolution mechanism tailored for inter-CPSE contractual disputes, but it does not supersede or substitute the statutory arbitration process mandated by the SARFAESI Act for conflicts involving secured creditors and security interests. Disputes that are related to securitization, reconstruction, or non-payment of dues between banks, financial institutions, or similar entities must be addressed through the arbitration process provided under Section 11 of the SARFAESI Act, and not through the AMRCD mechanism.