Ministry of Micro,Small & Medium Enterprises
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Empowering MSME Ecosystem: Advancing Commercial Dispute Resolution through a National ODR Framework


Success Stories Reflect the Transformational Impact of MSME Online Dispute Resolution (ODR) Portal: From Faster Payments to Stronger MSME

प्रविष्टि तिथि: 24 JUL 2026 4:27PM by PIB Delhi

a) Zeedesign Engineering: Fast-Tracking Payment Recovery through the ODR Portal of Ministry of MSME

Mrs. Pragya Verma, Director of Zeedesign Engineering Pvt. Ltd., a Mumbai-based Udyam-registered micro enterprise, successfully recovered ₹21.06 lakh through the MSME Online Dispute Resolution (ODR) Portal under the Ministry of MSME's RAMP Programme. 

Within just 24 hours of filing the petition on the ODR portal, the outstanding payment was released through an amicable settlement, demonstrating the effectiveness of the Ministry's digital dispute resolution mechanism. The success story highlights how the Ministry of MSME is strengthening the financial resilience of micro and small enterprises by ensuring faster payment resolution, promoting Ease of Doing Business and empowering entrepreneurs through transparent and accessible digital governance.

b) M/S Shiva Chemicals: Recovering Dues Through the ODR Portal of Ministry of MSME

M/S Shiva Chemicals, an Udyam-registered micro enterprise based in Kolkata, West Bengal, faced prolonged payment delays from a public sector buyer despite repeated follow-ups. Finally, the enterprise access the MSME ODR Portal, a digital dispute resolution mechanism and filed its claim before the Micro and Small Enterprises Facilitation Council (MSEFC) under the MSMED Act, 2006.

The intervention led to a mutual settlement, enabling the enterprise to recover ₹4,99,184 against two outstanding invoices. Following the successful resolution, the case was voluntarily withdrawn. This success story highlights how the ODR Portal is enabling faster payment resolution, strengthening the financial resilience of MSME and advancing Ease of Doing Business through transparent and accessible digital justice.

MSME Online Dispute Resolution Portal: Fast, Fair and Digital Resolution for MSME

Micro, Small and Medium Enterprises (MSME) are the backbone of India's economy, driving entrepreneurship, creating jobs and contributing to inclusive growth. Recognising the need for a faster and more efficient way to resolve commercial disputes, the Ministry of Micro, Small and Medium Enterprises has launched the MSME Online Dispute Resolution (ODR) Portal.

The Portal provides a simple, transparent and cost-effective digital platform for resolving commercial disputes, particularly delayed payment issues. By reducing dependence on lengthy litigation, it enables quicker settlements, helps businesses maintain healthy cash flows and strengthens trust between buyers and suppliers.

In addition to serving as a dispute resolution platform, the MSME ODR Portal encourages dialogue and collaboration. It helps businesses settle disputes amicably through negotiation, mediation and mutual agreement, preserving long-term commercial relationships and allowing entrepreneurs to focus on growing their businesses instead of pursuing prolonged legal proceedings.

Resolve Disputes Before They Escalate

One of the Portal's key features is its pre-MSEFC negotiation mechanism. Before a dispute reaches the MSEFC, buyers and suppliers are given an opportunity to engage with each other through a structured digital platform.

The Portal allows both parties to communicate their concerns, exchange relevant information and work towards a mutually acceptable solution in a non-adversarial environment. This approach saves time, reduces costs and helps maintain business relationships.
To support informed decision-making, the Portal also offers a Digital Guided Pathway that analyses the dispute and provides an indication of its likely outcome. This gives both parties greater clarity about their position and encourages realistic, informed settlements.

When disputes are resolved at this stage, businesses receive quicker outcomes while MSEFCs are able to devote more time to complex cases requiring formal intervention.

Accessible by Every MSME

The MSME ODR Portal has been designed to ensure that dispute resolution is accessible by every micro and small enterprise, regardless of location or digital familiarity. With an intuitive interface, simplified workflows and support for vernacular languages, entrepreneurs can easily initiate negotiations and participate in the resolution process from anywhere.

Where disputes require formal intervention, the Portal enables online conciliation and arbitration before the MSEFC, eliminating geographical barriers and reducing procedural delays. By making dispute resolution digital, accessible and transparent, the MSME ODR Portal supports the Government's vision of Digital India, Ease of Doing Business and an inclusive MSME ecosystem where every enterprise has equitable access to justice.

For more information, visit: https://odr.msme.gov.in/

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Sunil Kumar Tiwari

E-Mail - hipessi[at]gmail[dot]com


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