MSME Facilitation Council

The MSME Facilitation Council (MSEFC) is the statutory dispute-resolution body created under Section 18 of India’s MSMED Act 2006. Each Indian state/UT has one; a registered micro or small enterprise owed money can refer a delayed-payment dispute to the MSEFC of its state, which first attempts conciliation and, failing that, conducts arbitration as if under the Arbitration and Conciliation Act 1996. The MSEFC must dispose of a reference within 90 days, and its award is enforceable as a court decree. Its effectiveness for construction subcontractors is limited by the unresolved question of whether the MSMED Act applies to works contracts.

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