Arbitrator Nominated U/S 18(3) MSMED Act Erred In Deciding Merits After Finding Respondent Was Not MSME: Madras HC Upholds Setting Aside Of Award
4 months, 3 weeks ago

Arbitrator Nominated U/S 18(3) MSMED Act Erred In Deciding Merits After Finding Respondent Was Not MSME: Madras HC Upholds Setting Aside Of Award

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The Madras High Coury bench of Justices R. Suresh Kumar and C. Saravanan has held that an Arbitrator ought not to decide the case on merits after coming to a conclusion that the respondent was not a Micro, Small, and Medium Enterprise and therefore not entitled to invoke the machinery under the Micro, Small and Medium Enterprises Development Act, 2006. Pursuant to the same, the Sole Arbitrator entered upon reference where the appellant filed an application under Section 18 of the MSMED Act r/w Section 16 of the Arbitration and Conciliation Act, 1996, questioning the arbitrability of the dispute between the appellant and the respondent. The Sole Arbitrator accepted the appellant's contentions that the respondent was not validly registered as an MSME under the MSMED Act as per the Office Memorandum dated 27.06.2017. The court noted that the respondent was an MSME within the meaning of the provisions of MSMED Act and therefore the respondent was entitled to invoke jurisdiction of the MSEFC under Section 18 of MSMED Act. The court noted that before the MSEFC, the appellant had acquiesced in the proceedings under MSMED Act and had thereafter filed an application under section 18 of MSMED Act r/w section 16 of the Arbitration Act, questioning locus standi of the respondent to invoke jurisdiction/machinery under the provisions of Section 18 of MSMED Act.

History of this topic

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6 days, 20 hours ago
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1 month ago
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1 year, 7 months ago
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1 year, 10 months ago
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2 years, 2 months ago
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2 years, 4 months ago
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2 years, 4 months ago
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2 years, 4 months ago
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2 years, 8 months ago
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