Businesses are watching. Resolving disputes An arbitration clause is a commonly used dispute resolution clause. All contracts, agreements, and even treaties have dispute resolution clauses, which direct parties on how to resolve any issue between the parties. The government, the biggest disputant in the country, has not had a very successful track record in arbitration matters. A July 2024 Rajya Sabha disclosure by the union finance ministry said about 60% of the arbitral awards in case of PSUs such as National Highways Authority of India (NHAI) and NTPC Ltd were challenged, resulting in significant legal costs for the government. NHAI's pending claims under arbitration totalled ₹88,100 crore in FY23, a Rajya Sabha committee report said, adding that the figure was "worrisome". Arbitration was created as a method of out-of-court dispute resolution that is faster than litigation, a major advantage for commercial disputes in India, where courts are battling a massive pendency of over 60 million lawsuits.