New Delhi, Mar 16 (KNN) The Ministry of Micro, Small and Medium Enterprises (MSMEs) organised a national workshop on the MSME Dispute Resolution Portal in New Delhi to review progress in resolving payment disputes and strengthening institutional arbitration for MSMEs.
Responding to a query by the Federation of Indian Micro and Small & Medium Enterprises (FISME), on the empanelment of private ADR and ODR institutions, Anuja Bapat, Deputy Director General, Office of the Development Commissioner (MSME), clarified that State Micro and Small Enterprises Facilitation Councils (MSEFCs) can empanel private ADR and online dispute resolution (ODR) institutions from anywhere in the country.
She further explained that the Nodal Officer of the concerned MSEFC may enter a Memorandum of Understanding (MoU) with the ADR/ODR institution and subsequently onboard it as an arbitral institution on the MSME-ODR portal.
FISME has been writing to state governments, including the government of Uttar Pradesh, seeking adoption of institutional arbitration in contracts of government departments. However, the state governments have sought clarification regarding the procedure for empanelment of private ADR and ODR institutions.
A formal clarification from the Ministry would help facilitate the adoption of government-approved private arbitral institutions and promote greater use of institutional arbitration in government contracts.
Anuja Bapat also noted that following the transition from the Samadhan portal to the MSME ODR Portal on 15 October 2025, a total of 26 cases have been successfully resolved through the portal, with an aggregate resolution amount of Rs 1.55 crore.
Of these, five cases were settled at the pre-MSEFC stage—an innovative feature that enables unmanned dispute resolution using artificial intelligence.
Speaking at the workshop, SCL Das, Secretary, Ministry of MSME, underscored the critical role of state governments in strengthening the dispute resolution framework for MSMEs.
“Receivables financing, an efficient dispute resolution framework, and deregulation are key enablers of MSME growth. Achieving this requires collective ownership by state governments, industry associations, and MSMEs themselves,” he said.
SCL Das further stated that MSEFCs are an integral part of the justice delivery system, and the Ministry is working closely with state governments to build capacity of MSEFCS and improve their efficacy.
A technical presentation by India International Arbitration Centre (IIAC) highlighted key features of IIAC, an arbitration institution established by the statute of IIAC Act 2019.
The institution offers quick appointments of sole arbitrator, no filing fee for claim or counter claim, minimal arbitrator fee, fast track arbitration procedure and provision of legal aid to micro and small enterprises.
A technical handholding session was also conducted during the workshop.
The discussions further examined the practical challenges faced by MSEFCs and MSMEs while filing claims on the ODR portal. It was noted that MSMEs continue to face concerns regarding delays in hearings and the absence of ex parte proceedings when buyers fail to appear.
There is also a need for greater clarity on whether an MSME is eligible to file a claim on the portal in cases where the enterprise was registered after the date of delivery of goods or services.
Despite the ODR portal expediting dispute resolution, the execution of arbitral awards continues to remain a challenge.
Officials from the Ministry present at the workshop stated that they are reviewing effective execution practices adopted by states such as Uttar Pradesh, where arbitral awards are enforced as recovery of land revenue arrears.
The National workshop was held at Dr. Ambedkar International Centre, New Delhi on 16th March 2026.
(KNN Bureau)
