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Finin2minCurrent Action Brief · 13 Aug 2026
MSME & Business FinanceUpdated 5 October 2026

MSME Online Mediation Under the 2026 Amendment Act: 90-Day Timeline and Evidence Checklist

By Ravi Sisodia · Reviewed by CA Divyanshu Sengar · Updated 5 October 2026

The amended section 18 provides a 90-day mediation period from the date fixed for first appearance and enables an online mechanism, but these new timelines should be treated as enacted-not-yet-commenced until the commencement notification applies.

Finin2min 2-Minute Summary

Start the dispute file before mediation

Keep purchase order/contract, invoice, delivery/acceptance, credit notes, payment terms, ledger, statutory MSME status and correspondence. Identify principal, interest claim and any quality/set-off dispute separately.

A 90-day clock will be difficult to use effectively if parties spend the first weeks reconstructing records.

First-appearance date becomes critical

Once the amended provision commences, the mediation period is tied to the date fixed for first appearance. Record service, appearance and adjournments precisely.

Do not confuse referral date with first-appearance date.

Online process readiness

Prepare searchable PDFs, authorised representative details, video-hearing access, electronic-signature/filing capability and a settlement-authority matrix.

Confidentiality and settlement approvals should remain controlled even in a digital workflow.

90-day mediation case: first appearance is adjourned

A reference is listed for first appearance, but one party seeks adjournment. The amended clock is tied to the date fixed for first appearance, so process records should preserve the original fixed date and subsequent adjournment orders. Parties should not restart the internal clock simply because the substantive discussion began later.

This makes document readiness essential before the first listed date. A party that spends several weeks assembling invoices and ledger evidence can consume a material part of the future statutory period.

Mediation checklist

Questions readers commonly ask

Is the 90-day period already operative on 5 October 2026?

Treat it as pending the relevant commencement notification unless a later official notification is verified.

When does the 90 days run from under the amended text?

From the date fixed for first appearance.

Can mediation be online?

The amended Act empowers an online mechanism subject to notification/rules.

What should be prepared first?

A clean invoice and payment evidence chronology.

Official / primary sources

Disclaimer

Important: General educational and professional-reference material. Verify the current operative law, commencement notification, portal version and exact facts before acting. Educational and professional reference only; confirm the current law, rates and the facts of your case before relying on this page.

Educational and professional reference only — not financial, tax or legal advice. Verify the current official position from the primary source before relying on any figure, rate, provision or deadline.