What is the MSME Facilitation council?

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Author- admin
Date:June 1, 2022

What is the MSME Facilitation council

Section 20 of the Micro, Small and Medium Enterprises Development Act, 2006 (the ‘Act’) for the establishment of Micro and Small Enterprise Facilitation Councils (MSEFC) by the State Government.

Each Facilitation council consists of 3 – 5 members. The composition, and procedure to be followed in the discharge of their functions is / to be prescribed by State Government.  

The general function of the Micro and Small Enterprise Facilitation Council is provided in Section 18 of the Act. The facilitation council firstly conducts conciliation.

If conciliation fails without any settlement between the parties, the Council shall either itself take up the dispute for arbitration or refer it to any institution or centre providing alternate dispute resolution services for such arbitration.

For the conciliation as the provisions of section 65-81 of Arbitration & Conciliation Act, 1996 apply, as if the conciliation was initiated under Part III of that Arbitration & Conciliation Act, 1996.

For arbitration provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section(1) of section 7 of that Arbitration & Conciliation Act, 1996.