Mediation Act to reduce cost of litigation for MSMEs:  Law Minister Meghwal

  New Delhi. The Mediation Bill passed by Lok Sabha and Rajya Sabha during the monsoon session of the Parliament proposed several measures to reduce time and cost of litigation for MSMEs.

 “Government is seized of the concerns of MSMEs about lengthy and costly litigation and we shall push for resolution of disputes through Mediation centers all over India to reduce cost”, declared Minister of Law and Justice Arjun Ram Meghwal.

 Speaking at seminar on ‘Reducing Cost of Litigation for MSMEs’ in New Delhi, the Law Minister said, “Now that Mediation Bill is cleared and would be sent to President’s assent, the focus will shift to making Rules and Government will incorporate the suggestions emerged during Seminar”.

 The Seminar was organized by Federation of Indian Micro and Small & Medium Enterprises (FISME) and ‘Friends of MSMEs in Parliament’- a forum of Members of Parliament created to support MSMEs. 

 Convenor of the Forum Rajendra Agarwal, Member of Parliament assured  MSMEs that they would be made part of official consultation process in making of Rules for Mediation Act to incorporate their concerns including that of delayed payments.  

 President of FISME Prashant Patel highlighted the huge cost of litigation on Indian economy and GDP and gave a call to action : Accelerate Justice, Empowe MSMES, Unleash India’s Economic Potential.

 According to the feedback gathered by FISME from MSMEs, the major areas of concern are: difficulties in appointment of Arbitrators, interventions by Higher Courts post Award  extending the process inordinately and finally difficulties in execution of Awards.

 The well attended seminar was addressed by Justice R.S. Sodhi (Retd), T.K. Arun former Editor Economic Times and Senior Counsels and experts namely  J.P. Sengh; Sumant Batra,  Dr. Swati Jindal Garg (WeVaad), Tarun Nangia,  Isha Aggarwal, WeVaad and Neeraj Kedia- Chairman Banking & Finance Committee, FISME.     

 

 

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