MSMED Act Archives

Navigating MSME Law in 2024: Key Judicial Pronouncements

by Abhisaar Bairagi*, Milind Sharma** and Ausaf Ayyub***

SC 5-Judge Bench to decide if writ under Art. 226 would be maintainable against an order passed by Micro and Small Enterprises Facilitation Council

The Court took note of the conflicting Division Bench decisions regarding whether a writ petition could be entertained against any order/award of the MSEFC, and whether there is complete prohibition on maintainability of the writ petition before the High Court.

Op Eds OP. ED.

Whether the Law of Limitation is Applicable to the Claims under the MSMED Act, 2006

by Aparna Ramesh Devkar

Legislation Updates Rules & Regulations

IIAC (Conduct of Micro and Small Enterprises Arbitration) Regulations, 2024

On June 07, 2024, IIAC has made India International Arbitration Centre (Conduct of Micro and Small Enterprises Arbitration) Regulations 2024 (‘The Regulations’)

Case Briefs High Courts

Rajasthan High Court entertains appeal despite prima facie view on non-maintainability under MSMED Act

Rajasthan High Court decided to entertain the appeal due to the significant question of the application’s maintainability.

Case Briefs High Courts

Facilitation Council does not have jurisdiction to entertain dispute arising out of services not registered under MSMED Act: Allahabad HC

Allahabad High Court said that the term ‘condition and the specification of the cold storage’ together with the definition clauses constitute the cold storage services and, therefore, cold storage services have been properly structured under the U.P. Enactment read with modified subordinate legislation of Uttar Pradesh.

Case Briefs High Courts

Can MSMED Act have an overriding effect over Arbitration and Conciliation Act and agreement between parties? Allahabad HC answers

“The parties to an arbitration have an autonomy to decide not only on the procedural law to be followed, but also on the substantive law”

Op Eds OP. ED.

Permissibility of Arbitration Proceedings by Empanelled Arbitrators under the MSMED Act, 2006

by Hiresh Choudhary* and Surbhi Sharma**

Case Briefs High Courts

Executing Court having jurisdiction to execute award, can be any Court anywhere in the country, where decree can be executed: Allahabad HC reiterates

Allahabad High Court noted that the issue regarding the jurisdiction of the Executing Court was neither doubted nor was referred.

Case Briefs High Courts

Bombay High Court denies appointment of arbitrator for dispute against MSME

Bombay High Court held the instant applications under Section 11 of Arbitration Act as non-maintainable and dismissed the said applications.

Case Briefs High Courts

Arbitrator’s failure to decide on Interest Claim amounts to a “Decision”, Calcutta High Court allows challenge under Section 34 of Arbitration and Conciliation Act

Calcutta High Court held Arbitrator’s refusal to decide question of interest under the MSMED Act constitutes a “decision” and therefore, can be challenged under Section 34 of the Arbitration and Conciliation Act, 1996.

Case Briefs High Courts

[MSMED Act] Interest for delayed payment allowed even if principal amount already paid: Jharkhand High Court

“The MSMED Act, 2006 is a beneficial legislation with an object to promote and develop micro, small and/or medium enterprises, and the interpretation regarding a reference for the interest component alone would be in consonance with the object of the Act”

Case Briefs High Courts

Compliance of Section 19 of MSMED Act is a pre-requisite for seeking Stay on Arbitral Award: Calcutta High Court

The Calcutta High Court held that failure to comply with procedural requirements under Section 19 of the MSMED Act renders application for stay of Arbitral Award as not maintainable.

Case Briefs High Courts

Whether bar contained under S. 80 of Arbitration Act in selection of forum for arbitration applicable to MSMED Act? Allahabad HC answers

Allahabad High Court said that the MSMED Act, 2006 is a special law and in view of Section 24 the discretion given to Council for selecting the forum of arbitration between the parties has an overriding effect and therefore, at the stage of selection of forum for arbitration by the Council the prohibition contained in Section 80 of the A&C Act will not be applicable.

Case Briefs High Courts

Appointment of Arbitrator during pendency of reference before MSME Facilitation Council is contrary to MSMED Act: Calcutta High Court

“…being a special statute the MSMED Act will have an overriding effect vis-à-vis the Arbitration and Conciliation Act, 1996.”

Case Briefs Supreme Court

SARFAESI Act recoveries with respect to the secured assets to prevail over the recoveries under the MSMED Act: Supreme Court

The Supreme Court considered the provisions of Section 15 to 23 read with Section 24 of the MSMED Act and the provisions of SARFAESI Act and stated that there is no repugnancy between the two enactments and no conflict between the specific subject of ‘priority' . It, hence, upheld the subsequent enactment of law with non-obstante clause in SARFAESI Act over MSMED Act.