FISME Partners With WeVaad To Address MSME Dispute Resolution

New Delhi, Aug 20 (KNN) The Federation of India Micro, Small and Medium Enterprises (FISME) recently entered into a strategic partnership with WeVaad, an Online Dispute Resolution (ODR) institution, to enhance dispute resolution mechanisms for micro, small and medium enterprises across the country.

The memorandum of understanding was formalised through signatures by Anil Bharadwaj, Secretary General, FISME, and Lata Sethi, Co-Founder, WeVaad.

The collaboration aims to address critical challenges facing MSMEs, particularly payment-related disputes that significantly impact cash flow and operational stability.

According to research conducted by the Global Alliance for Mass Entrepreneurship and Dun & Bradstreet, with support from Omidyar Network India, outstanding invoices worth more than Rs 10.7 lakh crore remain unpaid to MSMEs as of December 2024.

The partnership seeks to address this substantial financial burden through expedited resolution processes.

WeVaad specialises in providing structured dispute resolution services through institutional arbitration, mediation, and conciliation, with a commitment to completing cases within 90 days.

The organisation also develops grievance redressal frameworks for both internal and external stakeholder disputes.

Under the partnership agreement, WeVaad will extend institutional support to help MSMEs resolve various commercial disputes, including outstanding invoices, delayed payments, and consumer-related issues.

The collaboration encompasses several key areas of cooperation, including the implementation of digital, time-bound, and cost-effective frameworks for recovering outstanding invoices and loan repayments.

The initiative includes plans for comprehensive awareness campaigns, training programs, and onboarding sessions to educate MSMEs about ODR mechanisms.

FISME members will gain access to a dedicated portal for dispute management through WeVaad's platform, supported by certified panel arbitrators, mediators, and conciliators operating under relevant legal frameworks.

The partnership represents a systematic approach to addressing the growing backlog of pending litigation that continues to affect MSME liquidity and creditworthiness.

By integrating technology-driven solutions with established ODR mechanisms, the initiative aims to improve access to justice for the MSME sector.

This memorandum of understanding is expected to further strengthen FISME's ongoing efforts in legal advocacy and policy reform for the MSME sector.

The organisation has been actively working to address systemic challenges faced by small and medium enterprises through various initiatives and partnerships with industry stakeholders.

(KNN Bureau)