Arbitration – MSME Registration after conclusion of the contract

Order dated 17.5.2024 of the Delhi High Court in W.P.(Civil) No.16233 of 2022 of the New Haryana Officers Cooperative Group Housing Society Vs.  Micro and Small Enterprises Facilitation Council and another

The dispute arose out of the contract given to the respondent no.2 for construction of a group housing project at Panchkula.   Respondent no.2 approached MSME Council, which, in turn, referred the same to Arbitration vide order dated 11.10.2022.

The petitioner society has challenged the arbitration reference order on the ground that the respondent no.2 had applied for registration as an MSME on 26.2.2019 after the services were ended i.e. after conclusion of the contract.

In view of this, the reference is illegal and the respondent no.2 could not have taken the benefit of MSME Act.