Case Law Analysis
|Bombay High Court
Section 18 MSMED Act | Ad Hoc Arbitration Permissible as Alternative to Statutory Remedy; Not Mandatory : Bombay HC
The Bombay High Court has held that registration under the MSMED Act does not bar MSMEs from pursuing ad hoc arbitration under the Arbitration and Conciliation Act, 1996. Section 18's remedy is discretionary, not mandatory, empowering businesses to choose faster dispute resolution without forfeiting substantive rights under contract law.