MSME Act & Facilitation Council - The MSME Act, particularly Section 18, establishes the Facilitation Council's authority to resolve disputes related to micro and small enterprises. However, courts have emphasized that disputes unresolved prior to MSME registration or outside the Council's jurisdiction are not maintainable under this framework. The Act also provides for alternative dispute resolution mechanisms, including arbitration and conciliation, which courts recognize as valid remedies. ER SURINDER SHARMA vs HIMACHAL PRADESH MICRO SMALL ENTERPRISES FACILITATION COUNCIL AND ANOTHER - Himachal Pradesh, S. R. Technologies (Unit-II) VS Micro and Small Enterprises Facilitation Council - Telangana, Sebros Steels Pvt Ltd A Private Limited Company Registered Under The Companies Act 1956 vs Madhya Pradesh Micro Small And Medium Facilitation Council Bhopal - Madhya Pradesh, Gannon Dunkerley And Co. Limited Through Authorized Signatory Ramesh Mishra vs Micro And Small Enterprises Facilitation Council - Madhya Pradesh, Docket Care Systems Lko. Thru. Partner Shri Pankaj Kumar Agarwal VS Union of India, Thru. Secy. Ministry of Micro, Small and Medium Enterprises, New Delhi - Allahabad
Court Rulings & Jurisdiction - The Supreme Court and High Courts have analyzed the scope of the MSME Act, often referring to its provisions to dismiss writ petitions on grounds of maintainability, citing the availability of statutory remedies under the MSME Act and Arbitration Act. Notably, recent judgments have referred the India Glycols case for reconsideration by larger benches, indicating ongoing legal debate over jurisdiction and arbitration under the MSME framework. ER SURINDER SHARMA vs HIMACHAL PRADESH MICRO SMALL ENTERPRISES FACILITATION COUNCIL AND ANOTHER - Himachal Pradesh, Sebros Steels Pvt Ltd A Private Limited Company Registered Under The Companies Act 1956 vs Madhya Pradesh Micro Small And Medium Facilitation Council Bhopal - Madhya Pradesh, Gannon Dunkerley And Co. Limited Through Authorized Signatory Ramesh Mishra vs Micro And Small Enterprises Facilitation Council - Madhya Pradesh, Hindustan Construction Company Ltd. VS Navin Kumar Prop. M/s Jai Durge Construction - Delhi, Docket Care Systems Lko. Thru. Partner Shri Pankaj Kumar Agarwal VS Union of India, Thru. Secy. Ministry of Micro, Small and Medium Enterprises, New Delhi - Allahabad, Union Territory of J And K vs Ms Gulati Metals And Alloys - J&K, KAMCO Chew Food Pvt. Ltd., Through Authorized Person Mr. Kartar Singh, S/o. C/O Shri Shri Mulchand Pahumal Motyani vs State Of Madhya Pradesh, Through Facilitation Council Madhya Pradesh Micro And Small Enterprises (MSME) - Madhya Pradesh
India Glycols Limited Case - In multiple instances, India Glycols Limited faced disputes resolved through the Facilitation Council, which awarded amounts owed to MSMEs. The courts have upheld the validity of these proceedings but also stressed that parties must pursue remedies through the prescribed statutory channels. The recent Supreme Court judgment in 2023 directed the Arbitrator to examine the registration date, reaffirming the importance of procedural adherence. S. R. Technologies (Unit-II) VS Micro and Small Enterprises Facilitation Council - Telangana, Sebros Steels Pvt Ltd A Private Limited Company Registered Under The Companies Act 1956 vs Madhya Pradesh Micro Small And Medium Facilitation Council Bhopal - Madhya Pradesh, ER SURINDER SHARMA vs HIMACHAL PRADESH MICRO SMALL ENTERPRISES FACILITATION COUNCIL AND ANOTHER - Himachal Pradesh, Union Territory of J And K vs Ms Gulati Metals And Alloys - J&K, KAMCO Chew Food Pvt. Ltd., Through Authorized Person Mr. Kartar Singh, S/o. C/O Shri Shri Mulchand Pahumal Motyani vs State Of Madhya Pradesh, Through Facilitation Council Madhya Pradesh Micro And Small Enterprises (MSME) - Madhya Pradesh
Arbitration & Alternative Remedies - The courts recognize arbitration and conciliation as appropriate dispute resolution mechanisms under the MSME Act, with provisions ensuring timely payments and dispute settlement. However, challenges remain regarding the scope of jurisdiction, especially when disputes involve parties outside the Council's purview or prior unresolved issues. The recent judgments underscore the need for parties to exhaust statutory remedies before approaching courts. Sebros Steels Pvt Ltd A Private Limited Company Registered Under The Companies Act 1956 vs Madhya Pradesh Micro Small And Medium Facilitation Council Bhopal - Madhya Pradesh, Docket Care Systems Lko. Thru. Partner Shri Pankaj Kumar Agarwal VS Union of India, Thru. Secy. Ministry of Micro, Small and Medium Enterprises, New Delhi - Allahabad, India Glycols Limited VS Micro and Small Enterprises Facilitation Council - Supreme Court
Key Insights - The legal landscape surrounding India Glycols and MSME disputes highlights the importance of registration, adherence to statutory procedures, and utilizing prescribed dispute resolution channels. While courts affirm the validity of MSME Act mechanisms, ongoing debates about jurisdiction and arbitration indicate a need for clarity and possibly larger bench rulings. The India Glycols case exemplifies the complex interplay between statutory remedies and judicial review. ER SURINDER SHARMA vs HIMACHAL PRADESH MICRO SMALL ENTERPRISES FACILITATION COUNCIL AND ANOTHER - Himachal Pradesh, S. R. Technologies (Unit-II) VS Micro and Small Enterprises Facilitation Council - Telangana, Gannon Dunkerley And Co. Limited Through Authorized Signatory Ramesh Mishra vs Micro And Small Enterprises Facilitation Council - Madhya Pradesh, Hindustan Construction Company Ltd. VS Navin Kumar Prop. M/s Jai Durge Construction - Delhi, Docket Care Systems Lko. Thru. Partner Shri Pankaj Kumar Agarwal VS Union of India, Thru. Secy. Ministry of Micro, Small and Medium Enterprises, New Delhi - Allahabad, Union Territory of J And K vs Ms Gulati Metals And Alloys - J&K, KAMCO Chew Food Pvt. Ltd., Through Authorized Person Mr. Kartar Singh, S/o. C/O Shri Shri Mulchand Pahumal Motyani vs State Of Madhya Pradesh, Through Facilitation Council Madhya Pradesh Micro And Small Enterprises (MSME) - Madhya Pradesh
Conclusion:
India Glycols Limited's disputes under the MSME Act have been subject to judicial scrutiny, affirming the Act's provisions for dispute resolution through Facilitation Councils and arbitration. Courts emphasize the necessity of pursuing statutory remedies before resorting to judicial review, with recent cases indicating ongoing discussions about the scope of jurisdiction and the need for larger bench decisions to resolve ambiguities.
The court analyzed the provisions of the MSME Act, particularly Section 18, which enables references to the Facilitation Council ... of the council's ruling declaring it lacked jurisdiction over disputes unresolved prior to the petitioner's registration as an MSME ... The court concluded that the petition was not maintainable, emphasizing the necessity to pursue established remedies under the MSME ... (2025)4 SCC 1 the issue decided in M/S Glycol supra has been referred for consideration of laorger Bench. The relevant e....
India Glycols Limited (respondent No.2 herein) - Amounts claimed by the claimant against respondent No.2 - Reference was registered ... under issue No.3 by holding that Facilitation Council has the mandate only to decide a matter referred to it under Section 17 of MSME ... India Glycols Limited (respondent No.2 herein). The amounts claimed by the claimant against respondent No.2 were as follows: Principal: Rs. 40,29,862.00 and Interest: Rs. 80,89,605.00 (as on the date of filing the reference). ... Micr....
Council Act, 2006 - Section 18(4) - Arbitration and Conciliation Act, 1996 - Sections 4, 16, and 37 - Challenge to the order of MSME ... Even the judgment of India Glycols (supra) has been referred for reconsideration to a larger Bench of five Judges recently by the Hon’ble Supreme Court vide order dated 22.01.2025 passed in Civil Appeal No. 3705/2024 (Tamil Nadu Cement Corporation Vs. ... So far as the question of alternative remedy is concerned, a view was taken by the Supreme Court in the case of M/s India ....
the statutory remedy under the MSME Act rendered the writ petition non-maintainable. ... Facilitation Council - Writ petition dismissed for lack of maintainability as the appellant had an alternative remedy under the MSME ... Act and Arbitration Act - The provisions of the MSME Act apply to both goods supplied and services rendered, ensuring timely payment ... In the case of M/s India Glycols Limited and another Versus Micro and Small Enterprises Facilitation [Civil Appeal No 7491 of 2023, dated 6.11.20....
of the Sole Arbitrator and directing the Sole Arbitrator to take evidence on the issue of the actual date of registration of the MSME ... The Supreme Court in its recent pronouncement dated 6th November, 2023, passed in Civil Appeal No. 7491/2023, titled as `M/s India Glycol limited and Anr. v. ... (C) 10657/2023, whereby the learned Single Judge declined to interfere with the Order dated 22nd May, 2023 passed by the Sole Arbitrator and disposed of the writ petition with directions to the Sole Arbitrator to take evidence on the issue, as ....
Review Application - MSME Act and Arbitration & Conciliation Act - Section 18(3) of MSME Act, Section 34 ... record, and the applicability of the provisions of the Arbitration & Conciliation Act to the arbitration proceedings under the MSME ... record, and the applicability of the provisions of the Arbitration & Conciliation Act to the arbitration proceedings under the MSME ... The learned Counsel in his endeavour to support that alternative remedy is available to the review applicant and has quoted Section 19 of the #HL....
The Supreme Court's ruling in "M/s India Glycols Limited and another Vs Micro and Small Enterprises Facilitation Council" (2024 AIR ... in the case of M/s India Glycols Limited and another (supra). ... In the aforesaid case of M/s India Glycols Limited and another, the Facilitation Council, Medchal – Malkajgiri passed an award on 28.10.2021 decreeing the claim of the MSME governed unit for a principal amount of Rs.40,29,862/- with interest of monthly rests at three ti....
India Glycols Limited and another Vs. Micro and Small Enterprises Facilitation Council, Medchal – Malkajgiri and others reported as AIR 2024 SC 285 ; Gannon Dunkerley and Co. Limited Vs. ... No.1010 of 2024 in respect of some other case arising out of the proceedings of the Facilitation Council under the MSME Act, in which also the petition was dismissed as withdrawn vide order dated 16.02.2024. ... 2] This petition has been filed by the petitioner under Article 226 of the Constitution of India against the order dated 18.08.2023, passed ....
Considering the objective of the MSME Act and the provisions of Sections 15 to 23 thereof, learned Single Judge erred in entertaining the writ petition. 6. ... force, the Micro and Small Enterprises Facilitation Council or the centre providing alternate dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India
17.The applicant was engaged in the manufacturing of MEKP (Methyl Ethyl Ketone Peroxide), which is a raw material to produce Fiber Reinforced Polymer (FRP) by mixing other chemicals namly Hydrogen Peroxide (HP), Methyl Ethyl Ketone (MEK), Dimethyl Phthalate (DMP) and Diethylene Glycol ... The only requirement is registration with the Authority about the applicant doing some business and his registration for the purpose of GST, VAT and MSME and other Insurance requirement. ... One of the earliest of these pronouncements was in Empress of India#HL_....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.