Section 18 of MSMED Act – Whether registration is necessary pre-condition to refer dispute to the Facilitation Council?
Section 18 does not use the expression “supplier”. It employs the phrase “any party to a dispute may”
Silpi Industries Vs. Kerala State Road Transport Corporation case is distinguished that it is not an authority on the issue that a reference under Section 18 cannot be made by a MSME if supplies were made or contracts were executed before filing of the memorandum under Section 8 of the MSMED Act.
In Gujarat State Civil Supplies Corporation Ltd judgment (2023 (6) SCC 401), there was no issue whatsoever as has arisen in our case that is about the right or rather a disability to seek a reference under Section 18 if the enterprise has not filed a memorandum.
Though it is possible for us follow the precedents referred to in para 27 to arrive at the conclusion that the judgments in Silpi Industries and Mahakali Foods coupled with subsequent orders in cases of Vaishno Enterprises and M/s Nitesh Estates cannot be considered to be binding precedents on the issue that has arisen for our consideration. However, taking into account the compelling need to ensure clarity and certainty about the applicable precedents on the subject, we deem it appropriate to refer the appeal to a Three Judge Bench.
Judgment dated 10.1.2025 of the Supreme Court of India in CIVIL APPEAL NO.3705 OF 2024 OF NBCC (INDIA) LTD VS. THE STATE OF WEST BENGAL AND OTHERS
