e-Samadhan Tribunal for MSMEs — a digital lifeline delivering faster, practical justice.
- Balu Narayan
- May 4
- 3 min read
What is an e-samadhan mechanism?
It is an administrative, digital grievance platform, while arbitration is a formal legal process with binding outcomes. Some advanced e-Samadhan systems include:
Mediation panels
Digital Lok Adalat-type settlements
These may resemble arbitration, but:
They are facilitated settlements, not arbitral awards
Participation is often not based on a prior arbitration clause
Defining an e-samadhan
e-Samadhan is a:
Digital grievance redressal system
Operated by government departments or institutions
Designed for administrative resolution of complaints
👉 It is part of executive governance, not private dispute resolution.
What is an “e-Samadhan Tribunal” ?
A digital, quasi-judicial escalation layer
Sitting at the top of an administrative grievance system
Empowered to issue reasoned decisions/orders
It is not created by a dedicated statute (in most cases), and does not function as a formal court.
When It Becomes “Tribunal-Like”
It starts behaving like a tribunal when it:
Issues speaking (reasoned) orders
Applies principles of natural justice
Allows representation / hearing
Handles appeals or escalations
Practical Position in Dispute Resolution Ladder
Think of the hierarchy like this:
Level 1: Complaint → Department
Level 2: Escalation → Senior अधिकारी
Level 3: 👉 e-Samadhan Tribunal (quasi-judicial layer)
Level 4: Statutory tribunal / Court
Level 5: Arbitration (if contract exists)
What are the preconditions?
The unit making the complaint must be having a MSME/ SSI/ e-Aadhaar registration certificate which is valid at the time of the grievance/ dispute arising
There should be a proper contract between the disputing parties
The matter should not simultaneously be under adjudication in:
Courts
Statutory tribunals
Arbitration
The grievance should be filed within a reasonable or prescribed period from:
Date of cause of action, or
Date of rejection/delay
The matter must fall within:
The scope of the platform (e.g., industry facilitation, public services, taxation interface)
The territorial jurisdiction of the implementing authority (state/department)Arbitration
The litigant must submit:
Supporting documents (applications, approvals, correspondence)
Proof of prior submissions or rejection/delay
Any relevant contracts, licenses, or compliance records
The grievance must have been:
Pending beyond the prescribed timeline, or
Disposed of unsatisfactorily
A real-life scenario
A large public sector undertaking (PSU), relying on a strict interpretation of the Goods and Services Tax Act, 2017, withheld payment of the GST component on invoices raised by an MSME. The PSU justified its position on the grounds that the MSME had filed its GST returns late.
However, the delay in filings was attributable in part to the widespread disruption caused by the COVID-19 pandemic between January 2020 and June 2021, compounded further by delays in payments from the PSU itself. Despite these challenges, the MSME eventually completed all statutory filings, albeit with some delay. Government-issued circulars providing relaxations during this period were not given effect to by the PSU, which chose to adhere rigidly to the letter of the law. This was notwithstanding an internal acknowledgment that payment could have been released while placing the compliance burden on the MSME, as contemplated under the legal framework.
Following eight hearings over the course of a year, the e-Samadhan tribunal-like authority ruled in favour of the MSME and directed that arbitration proceedings be initiated to determine the liability. In light of the potential costs, adverse publicity, and the underlying legal position, the PSU ultimately chose to settle the matter. The dispute was resolved through payment of the full GST dues to the MSME, with interest on delayed payment being waived.
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