Section 18(4) of the Micro, Small and Medium Enterprises (Development) Act, 2006, vests jurisdiction for arbitration in the Facilitation Council where the supplier is located – Harcharan Dass Gupta Vs. Union of India – Supreme Court
The issue relating to ‘seat of arbitration’ in all cases covered under the MSMED Act is settled in view of the pronouncement in Gujarat State Civil Supplies Corporation Ltd. v. Mahakali Foods Pvt. Ltd. (Unit 2) & Anr., (2022) ibclaw.in 131 SC. This position is also true by virtue of the specific provision of the MSMED Act, that is, Section 18(4) of the Micro, Small and Medium Enterprises (Development) Act, 2006, which vests jurisdiction for arbitration in the Facilitation Council where the supplier is located.