A Supplier would not be disqualified from making a reference to the MSME Facilitation Council only on the basis of whether the supplier was registered as an MSME Unit on the date of the contract? – Anupam Industries Ltd. & Anr. Vs. West Bengal Micro Small Enterprise Facilitation Council & Anr. – Calcutta High Court
April 30, 2023
Hon’ble High Court held that in the present case, the 1996 Act was enacted for the purpose of consolidating laws relating to domestic and international commercial arbitration. The MSMED Act of 2006 is a special statute as it was specifically enacted for facilitating the promotion and development of micro, small and medium Enterprises and enhancing their competitiveness. The alternative statutory remedy in the present case is not only sufficient and effective but also multi-layered. The petitioners can seek recourse through any of the remedies available under the 1996 Act; the petitioners have instead chosen to approach the Writ Court and invoke its extraordinary powers under Article 226 of the Constitution. In Marine Craft Engineers Private Limited vs. Garden Reach Shipbuilders and Engineers Limited (2023) ibclaw.in 271 HC, it was held that the date of execution of a contract between a buyer and a supplier under the MSMED Act loses relevance for the application of the said Act provided the supplier claims recovery of the amount due under section 17 for goods supplied after the date of registration. The Court also held that the supplier would not be disqualified from making a reference to the Facilitation Council only on the basis of whether the supplier was registered as an MSME Unit on the date of the contract.