Limitation Act does not apply on Conciliation proceedings: Supreme court allows conciliation u/s 18(2) of MSMED Act

The Supreme Court has ruled that the "Limitation Act does not apply to conciliation proceedings" under Section 18(2) of the MSMED Act, allowing "conciliation of time-barred claims." The court clarified that conciliation, being a non-adjudicatory and negotiation-based dispute resolution mechanism, is distinct from suits, appeals, or applications to which the Limitation Act applies. This significant ruling ensures that Micro, Small, and Medium Enterprises (MSMEs) can pursue conciliation even for claims that might otherwise be time-barred, promoting amicable settlement and providing an additional avenue for dispute resolution for these businesses, facilitating prompt recovery of dues.