Arbitrator appointment Vs MSMED Act 2006

The Applicant and the Respondent had entered the manufacturing agreement dated 22.9.2021 for use of its land by the applicant for manufacturing of fabrication of steel.    The agreement provided for the arbitration clause.

The Applicant and the Respondent are registered under the Micro, Small and Medium Enterprises Development Act, 2006.

The Applicant filed section 11(6) of AA petition for appointment of arbitrator to resolve the disputes in view of arbitration clause.

HELD that section 18 of the MSEMD Act provides that any dispute covered by section 17 is referable only to the Facilitation Council. Section 17 is in respect of recovery of amount due for any goods supplied or services rendered by the supplier.  Thus, the dispute between buyer and seller registered under the Act of 2006, is covered by Section 17 and the Council has jurisdiction to entertain the dispute.   However, in the present case, the dispute relates to the specific performance of terms of the contract.   As a result, the application for appointment of arbitrator is maintainable.