Micro, Small and Medium Enterprises Dispute
The term Micro, Small and Medium Enterprises (MSME) in itself is a very dynamic term and hence its definition has been changed from time to time by the Government.MSMEs were introduced by the Government by MSMED Act,2006. They are known to be the backbone of the country that has substantially contributed to the socio-economic development of the country. The Definition of MSME was recently changed again by the Government on the basis of Investment and Turnover. The new definition is as follows,
Micro: Companies with Investments upto Rs 1 crore and Turnover below Rs 5 crore.
Small: Companies with Investments upto Rs 10 crore and Turnover below Rs 50 crore.
Medium: Companies with Investments upto Rs 50 crore and Turnover below Rs 250 crore.
Interestingly, the dispute resolution under MSME Act currently is through "The Facilitation Council" which takes up a lot of time and thus delays the growth of MSMEs.But there exists a concept called Arbitration that can resolve both these problems at a minimal price and thus it is very essential for us to know about the concept of Arbitration.
What is Arbitration?
Arbitration is a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments. It is sometimes also called Alternative Dispute Resolution.
Importance of Arbitration
Arbitration is generally the most efficient and effective remedy for settling disputes among parties. It allows the parties to focus on the dispute rather than the public impact. It is also very cheaper than dispute as less time is spent on dispute resolution. The main problem of MSMEs is a delay of payments and Arbitration helps to resolve this problem in the most efficient manner with the help of Negotiation. Each and Every piece of information is confidential. Also, the arbitrator is chosen by the parties themselves and hence the parties tend to accept its decision better than courts'.The parties have an option to have a hearing via telephone which further saves time and cost.
What is PrivateCourt?
PrivateCourt is an entity created to protect the legal interests of Corporate and Non Corporate entities across the world. It makes Justice available to everyone in the most efficient and effective manner. It is also sometimes referred to as an Alternative Dispute Resolution system.
How PrivateCourt can help you?
1.PrivateCourt can help you resolve disputes related to Purchase, Service, Manufacturing, Equipment, E-commerce, and Employment contracts.
2.After getting Membership of PrivateCourt you can demand Customised Contracts, both online and offline dispute resolution, and other legal advice from our experts at anytime you want.
3.As an MSME you can get your disputes resolved at a very fast rate with the help of PrivateCourt and thus avoid any hindrance to your growth.
4.We at PrivateCourt believe in the solution of everything via Arbitration and Mediation. In fact, we go by the axiom 'Don't Hate, Mediate'.
5.We try to resolve everything initially with the help of negotiation. However, if the negotiation fails to reach a settlement, we try to set up a meeting between the parties and resolve the dispute in 4 to 5 hours with the help of our professionals.
6.The award(Judgement) papers reach both the parties in 5 working days after the dispute is resolved. More than 1000 disputes have been resolved in the last year at PrivateCourt.
Why do you need PrivateCourt?
1.PrivateCourt ensures the most deliberate and Practical Solution to each of your disputes.
2.The procedure of Dispute Resolution is very flexible and gives you( the parties of the dispute) the right to control the process.
3.We at PrivateCourt have the most efficient panel of Professionals for dispute resolution.
4.You can get any legal advice without any hesitation from our experts.
5.Justice at PrivateCourt is quite cost-effective and saves a lot of time.
6.Individual Contractors can use the logo PrivateCourt to gain trust and enhance its growth and employment.
PrivateCourt: Fast, Simple, and Online Justice for all.
-by Sweety & Tanish