Retail Trade outside purview of Section 7 of MSME Act 2006
The dispute between the parties arising out of the supply of medicines by the respondent no.5 to the petitioner was referred by MSME Facilitation Council to arbitration. The Arbitrator was appointed and the matter is pending.
This was challenged in the High Court.
OM Dated 27.6.2017 of the Ministry of Micro, Small and Medium Enterprises (SME) Section, Government of India, provides for “activities” (NIC Codes) not covered by the MSMED Act, 2006, for registration of Udyog Aadhar (UAM).
The office Memorandum indicates that the “retail trade” is outside the purview of MSMED Act and therefore, the dispute arising out of supply of medicines will fall outside purview of definition of “service” in accordance with Section 7 of the MSMED Act, 2006. Therefore, even though the respondent no.5 might be a service provider in other avenues cannot avail the benefit of said Act.
Therefore, the reference to arbitration was not valid.
Order dated 17.5.2024 of the Delhi High Court in in W.P. (Civil) No.16720 of 2022 of Jenendra Medicos Private Limited Vs. Union of India and others
