The provisions of Chapter-V of the MSMED Act, 2006 would have an overriding effect over any arbitration clause made in any agreement and the provisions of the Arbitration and Conciliation Act, 1996 – Numaligarh Refinery Ltd. Vs. Union of India and 2 Ors. – Gauhati High Court
Hon’ble High Court held that the provisions of Chapter-V of the MSMED Act, 2006 would have an overriding effect over any arbitration clause made in any agreement and the provisions of the Arbitration and Conciliation Act, 1996. Chapter-5 of the MSMED Act, 2006 comprises of Section 15 to 25. The question of whether the respondent No. 3 is a supplier in terms of Section 2 (n) of the MSMED Act, 2006 on the date of entering into contract with the petitioner and also whether Section 15 of the MSMED Act, 2006 is attracted in the facts of this case, keeping in view Section 2 (b) of the MSMED Act, 2006 would have to be decided for invoking Section 18(1) of the MSMED Act, 2006. These issues can be decided by the Facilitation Council. Further, conciliation proceedings under Section 18(2) and Arbitration proceedings under Section 18(3) of the MSMED Act, 2006 can be initiated.
