On termination of conciliation under MSMED Act the dispute between the parties can be resolved by arbitration- SC

Jharkhand Urja Vikas Nigam Limited Vs State of Rajasthan & Ors. (Supreme Court of India) From a reading of Section 18(2) and 18(3) of the MSMED Act it is clear that the Council is obliged to conduct conciliation for which the provisions of Sections 65 to 81 of the Arbitration and Conciliation Act, 1996 would apply, as if the conciliation was initiated under Part III of the said Act. Under Section 18(3), when conciliation fails and stands terminated, the dispute between the parties can be resolved by arbitration. The Council is empowered either to take up arbitration on its own or to refer ...