MSMED Act | Conciliation Mechanism Under Section 18 Shall Be Followed To Resolve Payment Dispute: Gauhati High Court Dismisses Writ Petition

The Gauhati High Court single bench of Kaushik Goswami dismissed a writ petition noting that when a dispute arises regarding payment under Micro, Small and Medium Enterprises Development Act, 2006, the mechanism under Section 18 shall be followed to resolve the dispute by way of a conciliation proceeding, failing which arbitration proceeding as prescribed under Section 18 to be conducted. Brief Facts: The Petitioner filed writ petition in the Gauhati High Court and challenged...

MSMED Act | No Bar In 'filing' Petition Under Section 34 A&C Without Pre-deposit of 75% Award Amount, but Will Not Be 'Entertained' Without Pre-Deposit: Delhi High Court

The Delhi High Court single bench of Justice Jasmeet Singh held that there is no bar in filing a petition under Section 34 of the Arbitration and Conciliation Act, 1996 and the same can be filed without pre deposit of 75% of the awarded amount under the Micro, Small and Medium Enterprises Development Act, 2006. However, the bench held that the petition will not be “entertained” under Section 19 of MSMED Act without the deposit of 75 % of the awarded amount. Brief Facts: The...

MSME Act | Council Cannot Entertain Application For Maintainability Of Reference At Conciliation Stage: Orissa High Court

The Orissa High Court single bench of Justice KR Mohapatra held that Micro & Small Enterprises Facilitation Council doesn't have power to entertain an application with regard to the maintainability of the reference at the conciliation stage under Micro, Small And Medium Enterprises Development Act, 2006. It held that question of maintainability can only be adjudicated if arbitration is taken up by the Council. “The question of maintainability can only be adjudicated if arbitration...

MSME Facilitation Council Can't Arbitrate Matters Pertaining To Individual Service Providers Outside The Scope Of MSME Act: Delhi High Court

The Delhi High Court single bench of Justice Prateek Jalan held that the MSME Facilitation Council does not have the jurisdiction to arbitrate matters pertaining to individual service providers who do not fall under the definition of 'supplier' under the MSME Act. The same would be violative of Section 34 of the Arbitration and Conciliation Act, 1996. Brief Facts:The matter pertained to an agreement between the parties which outlined the provision of toll management services by the...

Writ Petition Against An Award Passed By A Facilitation Council Under MSMED Act Not Maintainable: Supreme Court

The Supreme Court recently held that a writ petition against an award passed by a Facilitation Council under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 would not be maintainable. The bench comprising CJI DY Chandrachud, Justice JB Pardiwala and Justice Manoj Misra held that the correct remedy against an award under the Act was provided under Section 34 of the Arbitration and Conciliation Act 1996 and approaching a High Court instead of pursuing the said remedy...

MSMED Act 'Dues' Will Not Prevail Over SARFAESI Proceedings : Supreme Court

The Supreme Court observed that the dues under Micro, Small and Medium Enterprises Development Act, 2006 would not prevail over the SARFAESI Act.In this case, the Madhya Pradehs High Court held that MSMED Act will prevail over Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. According to the High Court, in view of Section 24 of the MSMED Act which provides that the provisions of Sections 15 to 23 of the MSMED Act would have overriding effect...

Party Who Was Not 'Supplier' On The Date Of Entering Into Contract Cannot Seek Any Benefit As Supplier Under MSMED Act : Supreme Court

The Supreme Court observed that a party who was not 'supplier' on the date of entering into contract cannot seek any benefit as the 'supplier' under the MSMED Act, 2006If any registration is obtained subsequently the same would have an effect prospectively and would apply to the supply of goods and rendering services subsequent to the registration, the bench of CJI UU Lalit and Justice Bela M. Trivedi observed.The bench was considering a batch of appeals which raised issues regarding interplay...

[Breaking] Compound Interest During Moratorium Period Can Be Waived For MSME & Personal Loans Up to Rs. 2 Crore: Centre Tells SC [Read Affidavit]

The Central Government on Friday informed the Supreme Court of its decision to waive compound interest during the six-month moratorium period, for MSME loans and personal loans up to Rs. 2 crore. The Union of India submitted that is has decided to continue the "tradition of handholding the small borrowers" and therefore, it has waived interest for the said period for the most "vulnerable category of borrowers" viz.: MSME loans up to Rs. 2 croreEducation loans up to Rs. 2 croreHousing...