Online resolution for late MSE payments likely from next week

The government is likely to next week roll out Online Dispute Resolution (ODR) for speedier resolution of delayed payment disputes for micro and small enterprises, officials said.

Presently, the Samadhaan portal provides limited digital services to MSEs such as registration for dispute resolution.

Under the proposed mechanism, parties can not only register their delayed payment cases but also submit documents on the portal as evidence to strengthen their case.


"Right from the filing stage, sending notice, and hearing every bit will be digitised. Samadhaan portal will be subsumed under ODR. The scheme promotes document-only dispute resolution, as in commercial disputes, documents override verbal submission, " a government official told ET. MSEs will also be provided concessions in application, documentation and other processing fees.

The ODR mechanism under the MSME Development Act seeks to strengthen institutional support by building human resource and technological capacity of the Micro and Small Enterprises Facilitation Council (MSEFC), set up under the MSMED Act, the official added. These MSEFCs will be financially assisted under the scheme to create legal capacity.

The MSMED Act prescribes a 45-day window for buyers to pay their MSME suppliers, failing which they become liable to payment of interest.

As part of the ODR, the government is also giving a push to AI, allowing parties to opt for an AI-facilitated dispute settlement process before approaching MSEFC.