🔍 What Happened

The Supreme Court held that Chapter-V of the MSME Act prevails over general arbitration law when there is an express MSME dispute — ensuring statutory MSME dispute resolution rights.

🧾 Summary

In a ruling on the intersection of arbitration and the Micro, Small and Medium Enterprises Act, 2006 (MSME Act), the Supreme Court ruled that where a dispute involves amounts due under the MSME Act, special statutory provisions prevail over general arbitration rules. The Court clarified that a council formed under the MSME Act may take up disputes for conciliation or arbitration even when a separate arbitration agreement exists. It also explained that only those registered as ‘suppliers’ at the contract date can claim MSME rights under the statute. This interpretation strengthens the MSME Act’s protective framework for small businesses and suppliers seeking dispute resolution outside conventional arbitration channels.

🟢 Public Takeaway

MSME suppliers have special statutory protections in dispute resolution, even if there’s a separate arbitration agreement.