MSMED Act – Medium Enterprise – Jurisdictional Bar of Section 18
Order dated 1.7.2026 of the District Judge (Commercial Court) -01, South East Saet Courts, New Delhi in OMP (COMM) No.33/24 of M/s Corner Stone Technologies Pvt Ltd Vs. M/s Ar Kay Medios Pvt Ltd
The nature of the transaction between the parties was for wholesale trading of the products and not for any hospital services.
The respondent filed the statement of claim on 13.5.2020 under the MSMED Act. However, in July, 2021, the category of “wholesale retail traders” was classified as MSME Act.
Therefore, one of the objections in section 34 petition was that the arbitral award under MSMED Act is illegal for want of jurisdiction.
In that context, it was HELD that the registration of an Enterprise for a particular activity / category under the MSMED Act will not render said MSME enterprise for another activity or category. The respondent could not have availed the provisions of MSMED Act for arbitration in respect of whole trading delayed payments. Therefore, the MSMED Facilitation Council did not have jurisdiction to refer the parties to arbitration under Section 18 of the MSMED Act.
Moreover, the MSME Certificate of the petitioner for Medium Enterprise under NIC -46 code ousts the dispute from the scope of s
