MSMED Act, 2006 overrides Arbitration Act, 1996

Gujarat State Civil Supplies Corporation Ltd Vs Mahakali Foods Pvt. Ltd (Supreme Court of India)

Supreme Court held that chapter-V of the MSMED Act, 2006 would override the provisions of the Arbitration Act, 1996. Accordingly, the Micro and Small Enterprises Facilitation Council shall have jurisdiction to proceed with the dispute covered u/s 17 of MSMED Act, 2006 despite the existence of an independent arbitration agreement between the parties.

Facts-

The common questions of law arise for consideration are –

(i) Whether the provisions of Chapter-V of the MSMED Act, 2006 would have an effect overriding the provisions of the Arbitration Act, 1996?

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