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2. In order to provide for an institutionalized mechanism for resolution of such disputes, Secretary, Department of Legal Affairs has vide DO letter No. 332619/338367/LS/2019 dt. 28th February, 2020 (copy enclosed) advised all Secretaries to the Government of India that the existing Administrative Mechanism for Resolution of Commercial 2022/DHC/004387 Disputes(AMRCD), currently applicable to commercial disputes between CPSEs inter se and also between CPSEs and Government Departments/Organisations, shall stand extended for resolution of disputes other than taxation, between Ministries/Departments inter se and between Ministries/Departments and other Government Ministries/ Departments/Subordinate/Attached offices/Autonomous and Statutory Bodies under their administrative supervision/control. Details of the new mechanism, namely, Administrative Mechanism for Resolution of Disputes (AMRD), are hereby outlined for guidance.

MTNL (supra) "4. The Government of India has now set up AMRCD, which has replaced the Permanent Machinery of Arbitration (PMA). The objective of AMRCD is to bring about a time-bound settlement of commercial disputes between Central Public Sector Enterprises (CPSEs) inter se and CPSE and Government Departments/Organisations.

****** 2022/DHC/004387 "5. The counsel for the appellant submits that since the disputes in the present case have arisen between two PSUs inter se, the matter should be referred to AMRCD.

****** "7. We have considered the submissions made by the parties. Though as a logical sequitur to the judgment dated 8-8-2019 [MTNL v. Canara Bank, 2019 SCC OnLine SC 995],CANFINA stands impleaded in the pending arbitral proceedings which ought to be taken to the logical conclusion, in our view, an attempt must be made if the disputes between the two public sector enterprises could be settled through AMRCD. If any settlement is brought about through such an attempt, it will not only save public funds, but will ensure the true spirit of coordination amongst different public bodies. Guided purely by these considerations, we direct all the three parties i.e. MTNL, Canara Bank, and CANFINA, to approach AMRCD for settlement of their disputes. If, however, the disputes are not settled by 15-1- 2020 the disputes will then be resolved through the pending arbitration proceedings as directed vide the judgment and order dated 8-8-2019 [MTNL v. Canara Bank, 2019 SCC OnLine SC 995] ."