Arbitration & MSME Act 2006
The appellant’s claim under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006, was in respect of the contracts of 2013 and 2014 under which it had supplied services to the respondent. Both the contracts contained arbitration clause. However, the appellant was registered under Section 8 of MSME Act on 3.2.2017.
The proceedings under Section 18 of MSME Act were barred since the appellant was registered only after the contract and the services rendered to the respondent.
Benefit of Section 18 of MSME Act cannot be given to the firm if the registration was done after the goods / services were supplied.
Order in JKG Infratech Private Limited Vs. Larsen and Toubro Limited – ARB.A. (COMM) 8/2024 decided on 6.2.2024 – Delhi High Court
