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NEELA GOKHALE
Bafna Udyog – Appellant
Versus
Micro & Small Enterprises, Facilitation Council – Respondent
JUDGMENT :
1. The Petitioner seeks appointment of any retired District Judge willing to conduct arbitral proceeding at Nashik under Section 11(6) of the Arbitration & Conciliation Act, 1996 (“Act”) and further direction to the Micro and Small Enterprises Facilitation Council to hand over all the records and proceedings in their custody to the arbitrator so appointed.
2. The Petitioner is registered as a small entity under the Micro, Small & Medium Enterprises Development Act, 2006 (“The MSMED Act”). The Ministry of Micro, Small & Medium Enterprises certifying the date of incorporation of the Petitioner as 21st March 2003 has issued the Udyam Registration Certificate. The Petitioner is a supplier and the Respondent No.2 is a buyer, who according to the Petitioner is liable to pay Rs.92,41,072/- to the Petitioner till 28th February 2023 with future interest as per the MSMED Act till realization of the amount. The Respondent No.1 is the Micro & Small Enterprises Facilitation Council ("MSEFC").
3. The Petitioner, a registered MSME, filed the statement of claim alongwith a declaration of termination of conciliation under Section 76(d) of the Act. It is the case of the Petitioner that de
The requirement of an arbitration agreement and the specific mechanism provided under Section 18 of the MSMED Act for conciliation and arbitration.
The existence of an arbitration agreement is essential for invoking jurisdiction under Section 11(6) of the Arbitration Act.
The Micro, Small and Medium Enterprises Development Act, 2006 has overriding effect over the Arbitration and Conciliation Act, 1996 when the jurisdiction of the Council has been invoked, and the Coun....
The court's decision emphasized the principle that when disputes are already pending in arbitration before a designated authority, the court may not appoint an Arbitral Tribunal under Section 11(6) o....
Micro and small enterprises may opt for arbitration even if the MSMED Act applies, but medium enterprises are not governed by its provisions.
The court upheld that statutory remedies under the MSMED Act take precedence over private arbitration agreements, affirming the Facilitation Council’s jurisdiction in disputes involving MSMEs.
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