Micro & Small Enterprise – Landmark Arbitration Platform for resolution of disputes
On 7.6.2024, the India International Arbitration Centre (IIAC) has issued IIAC (Conduct of Micro and Small Enterprises Arbitration) Regulations, 2024, for speedy resolution of disputes of micro and small enterprises and to promote arbitration in this important sector of the economy.
Background –
- IIAC is established by the India International Arbitration Centre Act and its Chairman is a former Judge of the Supreme Court of India. The paramount object is to create an independent and autonomous regime for institutional arbitration. IIAC is declared as an institution of national importance.
- Section 18(3) of the Micro, Small and Medium Enterprises Development Act, 2006, provides for the Facilitation Council to refer the dispute for arbitration after failure of conciliation proceeding.
In the above background, the IIAC Arbitration Regulations for Micro and Small Enterprises assumes importance for the following salutary reasons –
- Platform of Institutional Arbitration and that too, of national importance is provided to the micro and small enterprises.
- Fast Track Procedure
iii. No filing fee for statement of claim or counter claim
- Minimal arbitrator fees (less than specified in the Arbitration Act
- Minimal Administration Fees.
- Legal Aid to micro or small enterprise which is a party to the arbitration facing financial difficulties. If legal aid is allowed, it will waive upto 50% of the administration fee and assistance of a Counsel at no cost basis to aid and assist the claimant.
IIAC will use Artificial intelligence software developed by Digital India Bhashini Division for easy transparent arbitration process for all in any part of the country and language used by the parties. It is proposed to give live / real-time translation of the documents from one language to another, translation of documents.
It is for the first time that the technology of AI software will be used in the dispute resolution process in the country.
