{"id":296455,"date":"2023-07-11T12:00:16","date_gmt":"2023-07-11T06:30:16","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=296455"},"modified":"2023-07-13T09:19:44","modified_gmt":"2023-07-13T03:49:44","slug":"msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/","title":{"rendered":"Delhi High Court | MSEFC cannot entertain independent claim by the \u2018Buyer\u2019 against the \u2018Supplier\u2019 under the MSMED Act, 2006"},"content":{"rendered":"
\n

Delhi High Court:<\/b> A petition was filed by the petitioner raising issues arising out of the Micro Small and Medium Enterprises Development Act, 2006<\/a> (‘MSMED Act’) seeking to quash or set aside the impugned order dated 14-09-2021 passed by Micro and Small Enterprises Facilitation Council (‘MSEFC’) (respondent 1) under the MSMED Act, 2006<\/a> advising the petitioner to pay a sum of Rs. 9,59,66,352 to Harji Engineering Works Pvt. Ltd. (respondent 2) as per the agreement dated 17-10-2019. Prathiba M Singh, J., held that MSEFC can only entertain claims from the Suppliers against the Buyers and counterclaims by the Buyers against Suppliers and cannot entertain the independent claim by the Buyer against the Supplier under the MSMED Act, 2006<\/a>.<\/p>\n

The agreement dated 17-10-2019 was issued to the petitioner by respondent 2 for providing Combined Station Works (CSW) including Civil, Mechanical, Electrical and Instrumentation works at Paradip and Balasore Stations in Odisha. A second agreement dated 18-10-2019 was also placed to supply goods and services including labor, material tools etc., as also engineers and supervisors for monitoring services. Thus, the petitioner was the ‘Supplier’ and Respondent 2 was the ‘Buyer’. Certain disputes arose between the petitioner and respondent 2 regarding the payments under the agreements.<\/p>\n

A legal notice was issued by Respondent 2, the bank guarantee issued by the Petitioner under the agreement was encashed by Respondent 2. Respondent 2 filed a reference petition application under Section 18<\/a> of the MSMED Act, 2006<\/a> for delayed payment. Thereafter, vide the impugned order dated 14-09-2021 passed by MSEFC, the petitioner was advised to pay the sum of Rs. 9,59,66,352\/- to Respondent 2.<\/p>\n

The Court noted that the MSMED Act, 2006<\/a> has been enacted for the purpose of facilitating the promotion and development of Micro, Small, and Medium Enterprises and enhancing its competitiveness.<\/p>\n

The issue under consideration Under the MSMED Act, 2006<\/a>, whether an independent claim can be entertained by the MSEFC at the instance of the BUYER?<\/p>\n

The Court observed that under Section 18 of MSMED Act any party to a dispute can make a reference to the MSEFC in respect of any amount due under Section 17. Sections 15<\/a> to 18<\/a> of the MSMED Act, 2006<\/a> are inter-linked with each other and are also linked to the title of the chapter i.e., Chapter V: Delayed Payments to Micro and Small Enterprises. Thus, the entire Chapter V applies only in respect of delayed payments to Micro and Small Enterprises.<\/p>\n

The Court further observed that Chapter V excludes Medium Enterprises under Section 2(g)<\/a> of the MSMED Act, 2006<\/a>. Sections 15 to 17 also make it clear that the obligation is on the Buyer to make the payment promptly in terms of Section 15, failing which an increased rate of interest would be liable to be paid by the Buyer to the Supplier. These provisions do not deal with a situation where a Buyer raises claims against the Supplier, under the MSMED Act, 2006<\/a>.<\/p>\n

The Court concluded that on a plain reading of the statute makes it categorically applicable only in respect of claims recoverable by Suppliers, who are registered under the Act as Micro or Small Enterprises. Since the MSMED Act, 2006<\/a> itself has been enacted for the purpose of extending benefits to Suppliers, who are registered under the Act as Micro or Small Enterprises, it does not contemplate the reverse obligation i.e. claims relating to the amount recoverable from the Suppliers under the MSMED Act, 2006<\/a>. Thus, a literal reading of the various provisions shows that a Buyer cannot maintain an independent claim against the Supplier under the MSMED Act, 2006<\/a>.<\/p>\n

Thus, the Court sets aside the impugned order as MSEFC failed to consider the provisions of the MSMED Act, 2006<\/a> which provide that the MSEFC can only entertain claims from the Suppliers against the Buyers and counter claim by the Buyers against Suppliers and that it cannot entertain the independent claim by the Buyer against the Supplier under the MSMED Act, 2006<\/a>.<\/p>\n

[Uniseven Engineering and Infrastructure Pvt. Ltd v. Micro and Small Enterprises Facilitation Council District (South), 2023 SCC OnLine Del 3889<\/a>, decided on 5-07-2023<\/span>]<\/p>\n\n

Advocates who appeared in this case :<\/p>\n

Mr. Anirudh Bakhru, Mr. Ayush Puri, Mr. Umang Tyagi, Mr. Kanav Madnani, Mr. Vijay Laxmi Rathi & Mr. Pragya Choudhary, Advocates for the Petitioner;<\/p>\n

Ms. Arushi Gupta on behalf of Mr. Jawahar Raja, ASC, GNCTD for R-1. (M: 9811462308) Dr Amit George & Mr Sahil Garg, Advocate for the R-2.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Delhi High Court observed that the MSMED Act, 2006 has been enacted for the purpose of extending benefits to Suppliers, who are registered under the Act as Micro or Small Enterprises, it does not contemplate the reverse obligation i.e. claims relating to the amount recoverable from the Suppliers under the MSMED Act, 2006.<\/i><\/p>\n","protected":false},"author":67516,"featured_media":293503,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[39058,2590,27604,2543,59202,59201,57784,29964,59200,52869],"class_list":["post-296455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-buyer","tag-Claim","tag-counter-claim","tag-Delhi_High_Court","tag-independent-claim","tag-medium","tag-micro","tag-msme","tag-small","tag-supplier"],"yoast_head":"\nMSEFC cannot entertain independent claim by buyer under MSMED Act: Delhi HC| SCC Blog<\/title>\n<meta name=\"description\" content=\"Micro and Small Enterprises Facilitation Council cannot entertain independent claim by buyer against supplier under the Micro Small Medium Enterprises Act, 2006.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Delhi High Court | MSEFC cannot entertain independent claim by the \u2018Buyer\u2019 against the \u2018Supplier\u2019 under the MSMED Act, 2006\" \/>\n<meta property=\"og:description\" content=\"Micro and Small Enterprises Facilitation Council cannot entertain independent claim by buyer against supplier under the Micro Small Medium Enterprises Act, 2006.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/\" \/>\n<meta property=\"og:site_name\" content=\"SCC Times\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/scc.online\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-11T06:30:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-13T03:49:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"886\" \/>\n\t<meta property=\"og:image:height\" content=\"590\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Arunima\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Delhi High Court | MSEFC cannot entertain independent claim by the \u2018Buyer\u2019 against the \u2018Supplier\u2019 under the MSMED Act, 2006\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Arunima\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/\",\"url\":\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/\",\"name\":\"MSEFC cannot entertain independent claim by buyer under MSMED Act: Delhi HC| SCC Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp\",\"datePublished\":\"2023-07-11T06:30:16+00:00\",\"dateModified\":\"2023-07-13T03:49:44+00:00\",\"author\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/12b21fd8f65a572f39f27151710e16cb\"},\"description\":\"Micro and Small Enterprises Facilitation Council cannot entertain independent claim by buyer against supplier under the Micro Small Medium Enterprises Act, 2006.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#primaryimage\",\"url\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp\",\"contentUrl\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp\",\"width\":886,\"height\":590,\"caption\":\"delhi high court\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.scconline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Delhi High Court | MSEFC cannot entertain independent claim by the \u2018Buyer\u2019 against the \u2018Supplier\u2019 under the MSMED Act, 2006\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\",\"url\":\"https:\/\/www.scconline.com\/blog\/\",\"name\":\"SCC Times\",\"description\":\"Bringing you the Best Analytical Legal News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.scconline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/12b21fd8f65a572f39f27151710e16cb\",\"name\":\"Arunima\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8375ad8b08b1cbd970f4484d3218d81f3222a0ee3e463210f657780cb13e9569?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8375ad8b08b1cbd970f4484d3218d81f3222a0ee3e463210f657780cb13e9569?s=96&d=mm&r=g\",\"caption\":\"Arunima\"},\"url\":\"https:\/\/www.scconline.com\/blog\/post\/author\/scc-editor_9\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"MSEFC cannot entertain independent claim by buyer under MSMED Act: Delhi HC| SCC Blog","description":"Micro and Small Enterprises Facilitation Council cannot entertain independent claim by buyer against supplier under the Micro Small Medium Enterprises Act, 2006.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/","og_locale":"en_US","og_type":"article","og_title":"Delhi High Court | MSEFC cannot entertain independent claim by the \u2018Buyer\u2019 against the \u2018Supplier\u2019 under the MSMED Act, 2006","og_description":"Micro and Small Enterprises Facilitation Council cannot entertain independent claim by buyer against supplier under the Micro Small Medium Enterprises Act, 2006.","og_url":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/","og_site_name":"SCC Times","article_publisher":"https:\/\/www.facebook.com\/scc.online\/","article_published_time":"2023-07-11T06:30:16+00:00","article_modified_time":"2023-07-13T03:49:44+00:00","og_image":[{"width":886,"height":590,"url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.jpg","type":"image\/jpeg"}],"author":"Arunima","twitter_card":"summary_large_image","twitter_title":"Delhi High Court | MSEFC cannot entertain independent claim by the \u2018Buyer\u2019 against the \u2018Supplier\u2019 under the MSMED Act, 2006","twitter_misc":{"Written by":"Arunima","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/","url":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/","name":"MSEFC cannot entertain independent claim by buyer under MSMED Act: Delhi HC| SCC Blog","isPartOf":{"@id":"https:\/\/www.scconline.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#primaryimage"},"image":{"@id":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#primaryimage"},"thumbnailUrl":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp","datePublished":"2023-07-11T06:30:16+00:00","dateModified":"2023-07-13T03:49:44+00:00","author":{"@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/12b21fd8f65a572f39f27151710e16cb"},"description":"Micro and Small Enterprises Facilitation Council cannot entertain independent claim by buyer against supplier under the Micro Small Medium Enterprises Act, 2006.","breadcrumb":{"@id":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#primaryimage","url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp","contentUrl":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp","width":886,"height":590,"caption":"delhi high court"},{"@type":"BreadcrumbList","@id":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/11\/msefc-cannot-entertain-independent-claim-by-buyer-under-msmed-act-legal-updates\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.scconline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Delhi High Court | MSEFC cannot entertain independent claim by the \u2018Buyer\u2019 against the \u2018Supplier\u2019 under the MSMED Act, 2006"}]},{"@type":"WebSite","@id":"https:\/\/www.scconline.com\/blog\/#website","url":"https:\/\/www.scconline.com\/blog\/","name":"SCC Times","description":"Bringing you the Best Analytical Legal News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.scconline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/12b21fd8f65a572f39f27151710e16cb","name":"Arunima","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/8375ad8b08b1cbd970f4484d3218d81f3222a0ee3e463210f657780cb13e9569?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8375ad8b08b1cbd970f4484d3218d81f3222a0ee3e463210f657780cb13e9569?s=96&d=mm&r=g","caption":"Arunima"},"url":"https:\/\/www.scconline.com\/blog\/post\/author\/scc-editor_9\/"}]}},"jetpack_featured_media_url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":299143,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/08\/11\/delhi-high-court-upholds-reference-to-arbitrationmsefc-medium-enterprises-msme-act\/","url_meta":{"origin":296455,"position":0},"title":"Can Micro & Small Enterprises Facilitation Council entertain references to arbitration from \u2018Medium Enterprises\u2019 under MSMED Act, 2006? Delhi High Court analyses","author":"Arunima","date":"August 11, 2023","format":false,"excerpt":"The MSMED Act, 2006 is a beneficial legislation for Micro, Small and Medium Enterprises and ought to be construed in a manner that is beneficial to such enterprises.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":302639,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/29\/msme-interest-for-delayed-payment-allowed-principal-amount-already-paid-jharkhand-hc\/","url_meta":{"origin":296455,"position":1},"title":"[MSMED Act] Interest for delayed payment allowed even if principal amount already paid: Jharkhand High Court","author":"Ridhi","date":"September 29, 2023","format":false,"excerpt":"\u201cThe 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\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"jharkhand high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jharkhand-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jharkhand-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jharkhand-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jharkhand-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":351318,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/06\/24\/del-hc-interplay-b-w-msmed-act-arbitration\/","url_meta":{"origin":296455,"position":2},"title":"Delhi HC: Invoking S.18 of MSMED Act for dispute resolution not mandatory, but once invoked, party cannot seek appointment of arbitrator","author":"Editor","date":"June 24, 2025","format":false,"excerpt":"\u201cOnce the mechanism under MSME Act is triggered by any party, the procedure has to be taken to its logical end. However, once there is no trigger by invoking the jurisdiction of the Council, party cannot be precluded from resorting to any other mechanism for resolution of its disputes.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":318653,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/03\/29\/rajasthan-high-court-entertains-appeal-despite-prima-facie-view-on-non-maintainability-under-msmed-act-scc-times\/","url_meta":{"origin":296455,"position":3},"title":"Rajasthan High Court entertains appeal despite prima facie view on non-maintainability under MSMED Act","author":"Ritu","date":"March 29, 2024","format":false,"excerpt":"Rajasthan High Court decided to entertain the appeal due to the significant question of the application\u2019s maintainability.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Rajasthan High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":292770,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/05\/22\/calcutta-high-court-appointment-arbitrator-pendency-reference-msme-facilitation-council-contrary-to-msmed-act-scc-blog-legal-research-news\/","url_meta":{"origin":296455,"position":4},"title":"Appointment of Arbitrator during pendency of reference before MSME Facilitation Council is contrary to MSMED Act: Calcutta High Court","author":"Ritu","date":"May 22, 2023","format":false,"excerpt":"\u201c\u2026being a special statute the MSMED Act will have an overriding effect vis-\u00e0-vis the Arbitration and Conciliation Act, 1996.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":330656,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/09\/12\/madras-high-court-waives-swiss-garnier-pre-deposit-contemplated-s-19-msmed-act-for-setting-aside-award\/","url_meta":{"origin":296455,"position":5},"title":"Madras High Court waives Swiss Garnier’s pre-deposit contemplated under S. 19 of MSMED Act for setting aside an award","author":"Apoorva","date":"September 12, 2024","format":false,"excerpt":"The statutory authority under the MSMED Act would only have the jurisdiction to entertain a dispute when the supplier had been registered as a Micro or Small enterprise under the MSMED Act at that relevant point of time.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madras High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Madras-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Madras-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Madras-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Madras-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/296455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67516"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=296455"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/296455\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/293503"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=296455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=296455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=296455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}