Complete details of Online Dispute Resolution (ODR)

Описание: Ministry of Micro Small and Medium Enterprises has launched Online Dispute Resolution Portal (ODR) as a solution of delayed payment.

Object of ODR is ease of justice, and ultimately ease of doing business to MSEs from the comfort of their homes and any corner of the country.
ODR will facilitate the processes of filing, summoning, pleadings, evidence, hearing, arguments, order, final disposal, and tracking of settlement orders and awards enforcement.

The Ministry of MSME will support the micro or small enterprises by providing one-time financial assistance for documentation and application fees charged by MSEFCs (if any), limited to a maximum grant of Rs. 4,000 per MSE.

There will first be a Pre-MSEFC Stage.

The pre-MSEFC stage is a voluntary which is out-of court solution that shall be undertaken based on consent provided by both parties. The pre-MSEFC stage envisages two processes: (1) Digital Guided Pathway, and/or (2) Unmanned Negotiation. The parties to the dispute may either choose one of the two processes under the pre-MSEFC stage or both processes in a sequential manner or opt out of the entire pre MSEFC stage.

In case any or all of the parties opt out of the pre-MSEFC process, the parties shall enter the MSEFC stage, which shall be undertaken as per the procedure defined under the MSMED Act, 2006.

The entire pre-MSEFC stage shall be completed within a period of fifteen (15) days from the date of filing of the delayed payment application. Such continuation shall start from the sixteenth (16th) day and shall not exceed more than fifteen (15) days. Thus, the entire proceedings shall have to be concluded within thirty (30) days.

Online dispute resolution proceedings will commence when an automated communication has been sent to the MSE seller and the buyer/s through text message and email.

The buyer on receipt of an automated communication along with the application and documents, may file a brief reply to the application along with relevant documents, if any.

A buyer may file documents, if any, in support of their defense. c) Amount paid, if any, paid by the MSE seller with respect to the subject matter of the delayed payment application.

Basis the facts entered by the parties, Digital Guided Pathway enabled by Artificial Intelligence/ Machine Learning tools will generate a probable outcome of the case that will be arrived at, after thorough evaluation of the facts of the case and precedents passed by the courts of law and tribunals.

The parties will have an option to amend the clauses of the agreement by entering deviations in the proposed settlement agreement in the Pathway.

Such an agreement shall be executed online, as permissible in law, through the MSME ODR Portal.

If Digital Guided Pathway proceedings do not result in a mutual settlement before the expiry of the prescribed timeline, the Digital Guided Pathway proceedings will terminate.

If any or all of the parties choose to opt out of the Digital Guided Pathway, or if the parties fail to arrive at any mutual settlement during the Digital Guided Pathway process, the parties will enter into the Unmanned Negotiation process on the MSME ODR Portal.
Unmanned Negotiation proceedings will be facilitated through the MSME ODR Portal. Unmanned Negotiation will enable the parties to the dispute to arrive at an out-of-court settlement through discussion and negotiation before entering into the formal process of dispute resolution under the MSMED Act, 2006.

If the parties arrive at an amicable settlement based on the discussions during the Unmanned Negotiation process, a draft settlement agreement recording the terms and conditions of the agreement agreed upon by the parties will be generated for the perusal of the parties to the settlement.

The duly executed agreement shall be sent to the parties by text message and email, if any, for compliance with the terms and conditions of the agreement.

If the Unmanned Negotiation proceedings do not result in a mutual settlement before the expiry of the prescribed timeline, the Unmanned Negotiation proceedings will terminate, and the parties shall enter into the formal MSEFC process that shall be undertaken as mandated under the MSMED Act, 2006.

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