/04 · Service specification

Dispute resolution

Finding a way forward

Buildwright does not represent clients in court. We're a non-litigious virtual compliance team. What we do is help you avoid disputes through better contracts, and resolve the ones that happen through mediation, arbitration, and the statutory mechanisms built specifically for smaller businesses.

Reinforcements and repairs.

Most disputes a startup runs into aren't dramatic. A client who won't pay, a vendor who didn't deliver, a co-founder disagreement over an exit. Court is rarely the right tool for any of these: it's slow, expensive, and public.

India has built faster, cheaper, more private mechanisms for exactly this kind of dispute. For one specific and common case, late payment from a buyer, there's a statutory process that works entirely in your favor if you're registered correctly.

Want us to handle dispute resolution for you, end to end?

What's included

We draft contracts with dispute resolution clauses that actually protect you, before a dispute exists
Escalation clauses, named arbitration seats, and clear payment terms, built in before you ever need them.
We facilitate negotiation and mediation between businesses
Structured conversations aimed at a resolution both sides can live with.
We guide you through the MSME Samadhaan process if you're owed a delayed payment
From filing on the Samadhaan portal through to the Council's decision.
We help you prepare arbitration clauses and think through your options
Clause drafting and strategy for when arbitration is the right next step.

We do not appear in court on your behalf. If a matter genuinely requires litigation or courtroom advocacy, we'll tell you that plainly and help you find the right representation.

Packages starting from [pending]. Ask us for current pricing.

The details

Litigation vs. arbitration vs. mediation

	Litigation	Arbitration	Mediation
Speed	Slowest, can run for years	Faster than court, still formal	Fastest, often resolved in weeks
Cost	Highest	Moderate, arbitrator/institution fees	Lowest
Confidentiality	Public record	Private	Private
Outcome	Imposed by a judge	Imposed by an arbitrator, binding	Reached by agreement, nothing imposed
Relationship preserved?	Rarely	Sometimes	Usually, built for ongoing business relationships
Enforceability	Court decree	Binding, enforceable like a court award	Enforceable as a court decree under the Mediation Act, 2023, once the settlement is recorded

The practical order most disputes should follow: negotiation first, mediation second, arbitration only if mediation genuinely fails. A well-drafted contract builds this escalation ladder in from the start, so nobody has to negotiate the process for resolving a dispute in the middle of the dispute itself.

MSME Samadhaan: recovering delayed payments

If you're a Udyam-registered micro or small enterprise and a buyer hasn't paid you within the statutory window, this route exists specifically for you, and it's stacked in your favor.

How it works

File on the Samadhaan portal
Or directly with your state's Micro and Small Enterprise Facilitation Council. You'll need your Udyam registration and documentation of the transaction.
Conciliation first
The Council attempts to mediate a resolution under the Arbitration and Conciliation Act, 1996.
Arbitration if conciliation fails
The Council either arbitrates the matter itself or refers it to an external institution.
Statutory timeline
The Council is directed to dispose of the matter within 90 days of the reference being made, though in practice backlogs can extend this.

Why this route is unusually strong for small businesses

Interest at three times the RBI's benchmark rate accrues on the delayed amount, a real deterrent against buyers who drag their feet
This process overrides any private arbitration clause in your contract. The Supreme Court has confirmed MSME-specific protection takes precedence over a general arbitration agreement
A 75% pre-deposit is required from the buyer before they can even appeal an award against them, which strongly discourages delay tactics
Tax consequence for the buyer: under Section 43B(h) of the Income Tax Act, a buyer who pays a registered micro or small enterprise late can't deduct that expense until the year they actually pay

Eligibility check

You hold a valid Udyam Registration
You're a micro or small enterprise (not medium)
The statutory payment window (15 days without a written agreement, or up to 45 days with one) has expired
You have some form of documentation, written or affidavit-backed, of the purchase

Preventing disputes before they happen

The strongest dispute resolution tool is a contract that never needed to be tested. A few things worth checking in every agreement your business signs:

A clear escalation clause: negotiation → mediation → arbitration, with defined timeframes at each stage
A named seat and venue for arbitration, and the governing law, spelled out rather than assumed
Payment terms stated in writing, with a specific, real due date, rather than "as soon as possible" or something implicit
For any contract with a small enterprise as a counterparty, an awareness that MSME statutory protections apply regardless of what the contract's arbitration clause says

Signs your contract needs a stronger dispute resolution clause

It doesn't name who arbitrates, where, or under which rules
It jumps straight to arbitration with no negotiation or mediation step first
Payment terms are vague enough that "late" is hard to prove
It was copied from a template not written with Indian contract law in mind

How it works

Step 1 of 4

Tell us what's happening

The situation, from your side.

Common mistakes founders make

Waiting too long to send a formal notice, which weakens your position and narrows your options later.
Negotiating a resolution over WhatsApp or email with nothing documented, so there's no enforceable record if it falls apart.
Escalating before understanding what remedies are actually realistic, which can cost more than the dispute was worth.

Frequently asked questions

No. We're a non-litigious consultancy. Our work is prevention (contract drafting) and non-court resolution (negotiation, mediation, arbitration guidance, and the MSME Samadhaan process). If your matter needs courtroom representation, we'll say so directly and help you find the right advocate.

Mediation reaches an agreement both sides consent to. Nothing is imposed. Arbitration produces a binding decision from an arbitrator, similar to a court judgment but private and generally faster.

Yes. An affidavit covering an oral purchase order is accepted, though a written agreement makes the claim considerably easier to establish.

Yes. Under the Mediation Act, 2023, a recorded mediated settlement agreement is enforceable as if it were a court decree.

The statutory target is 90 days from the reference, though actual timelines vary with the Council's caseload. It's still generally faster and cheaper than litigation.

No. The MSMED Act's protection for registered micro and small enterprises overrides a private arbitration clause, so you can still bring the claim through the statutory route.

Ready to get started?

Tell us about your business and we'll take it from there.

Buildwright provides documentation, filing, and compliance facilitation — not legal advice or advocacy. For guidance specific to your situation, consult a qualified professional before relying on anything here.