The AI-driven platform will resolve disputes that include civil, commercial, personal, consumers under the Private Justice System.
Considered as the accelerator of socio-economic development of the country, the MSME sector has been gaining momentum as it accounted for nearly 30% of India’s Gross Domestic Product (GDP) in the financial year 2019. A slew of development schemes have been announced in order to increase the sector’s contribution to 50%.
However, the sector continues to face multiple challenges, one of which is lack of working capital. Since MSMEs don’t have sufficient security to offer to the bank for raising capital or other alternate ways of raising capital, they continue to work with their limited capital. In case of any dispute, the entire capital is bound to get blocked. Therefore, it is imperative that MSMEs have speedy justice given the long time taken in litigation in courts.
Keeping this in mind, Jupitice announced the MSME Digital Court. The AI-driven platform will resolve disputes that include civil, commercial, personal, consumers under the Private Justice System.
“Jupitice’s MSME Digital Court is a digital mirror of Traditional court powered by digital justice ecosystem. This means that an out-of-court settlement through ADR mechanism is now possible, that too all online. SME owners or stakeholders won’t have to worry about investing their time, energy, focus, money on resolving disputes via a time-consuming litigation process,” said Raman Aggarwal, Founder and CEO, Jupitice Justice technologies, in a statement.
Maharashtra MSMEs filed 20,463 applications, of which 8,589 are outstanding, according to the dashboard of MSME Samadhan, a delayed payment-monitoring system. With 6,345 out of 7,864 total, Delhi has the second-highest number of outstanding applications in the country.
MSMEs also contribute significantly to job creation, employing around 110 million people across the country. MSMEs are connected with the rural economy, as more than half of MSMEs operate in India’s rural areas. According to survey estimates, the Covid-19 pandemic disrupted MSMEs profits by 20 -50 percent, with micro and small businesses bearing the brunt of the impact, owing to a liquidity crunch.
“The need for an effective use of Alternative Dispute Resolution mechanisms is now more than ever with the on-going pandemic situation. It is high time that people opt for Arbitration or Mediation mechanisms for quicker dispute resolution, especially with ODR in the scene,” said Justice (Retd.) Kshitij R Vyas, Former Chief Justice of Bombay High Court and currently a panelist with Jupitice Justice Technology, in a statement.
In order to build a better relationship across businesses for MSMEs, Jupitice is plans to enhance the liquidity of MSMEs by providing fast, cost-effective and efficient dispute resolution. It has also been working towards reducing the litigation rate and consequently reducing the burden on judiciary/public justice system.