ADROIT team renders winning remedies for your delayed payments via MSMED Act 2006 dispute resolution.
Micro, Small, and Medium Enterprises (MSMEs) often face challenges related to delayed payments from larger corporations or government entities, which can significantly impact their cash flow and operations.
To address these issues, specific dispute resolution mechanisms are tailored to MSMEs, including arbitration. Here’s an overview of MSME dispute resolution for delayed payments and arbitration:
MSMED Act 2006 is aimed at protecting MSMEs from delayed payments and providing mechanisms for prompt resolution of disputes. These laws often set out specific timelines for payment and establish penalties or interest for late payments.
MSME facilitation councils or similar bodies tasked with addressing issues faced by MSMEs, including delayed payments. These councils may provide mediation, conciliation, or arbitration services to help resolve disputes efficiently.
Some jurisdictions have established specialized arbitration centers or panels specifically designed to handle disputes involving MSMEs. These centers may offer simplified procedures, reduced fees, and expedited timelines to accommodate the needs of MSMEs.
Before initiating arbitration proceedings, parties may opt for mediation or conciliation as a means of resolving disputes amicably. These alternative dispute resolution methods allow parties to explore settlement options with the assistance of a neutral third party, potentially avoiding the need for formal arbitration.
MSMEs may benefit from robust enforcement mechanisms to ensure compliance with arbitration awards or settlement agreements. These mechanisms may include provisions for swift enforcement through the courts, as well as penalties for non-compliance.
To empower MSMEs to effectively navigate the dispute resolution process, capacity-building initiatives and awareness campaigns may be undertaken. These initiatives provide MSMEs with information about their rights, available dispute resolution mechanisms, and how to access them.
Should you require remedy for your delayed payments and if you are MSME, please reach us at ram.s@adroitpmc.com or madhu@adroitpmc.com ; we have many successful cases decided in favour of MSME Clients.
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