Disputes over time-barred debts of MSEs can be referred to conciliation but not arbitration: Supreme Court

The Supreme Court has ruled that disputes over time-barred debts of Micro and Small Enterprises (MSEs) can be referred to conciliation but not arbitration. The court clarified that while the Limitation Act, 1963, applies to arbitration proceedings, conciliation, being a non-adjudicatory process, is not bound by the same. This means that a time-barred claim can be settled through conciliation under the MSMED Act, and any settlement agreement reached would be valid, but such claims cannot be forcibly referred to arbitration.