#MSME Act

The Delhi High Court ruled that MSME registration under Section 18 operates prospectively, so pre-registration claims are not maintainable before the Facilitation Council. A party cannot abandon arbitration and later obtain MSME registration to invoke MSEFC jurisdiction - this constitutes forum hunting. Territorial jurisdiction of MSEFCs is also strict, preventing forum shopping.

Calcutta HC directed SAIL to re-invite the MSME petitioner, allowing it to match the lowest-bidder’s price because the bid fell within the 15 % band mandated by the 2012 MSE purchase-preference policy. The court held that not ticking the MSME option on GeM does not defeat eligibility, and a mandamus can compel compliance. The ruling safeguards registered MSMEs in public procurement, ensuring they can compete even if the portal preference box is missed.

Kerala High Court directed the MSME Facilitation Council to dispose of a pending claim petition within three months after conciliation proceedings failed. The ruling underscores the enforceability of mandamus writs against statutory bodies for timely adjudication under the MSME Act.

Gauhati HC clarifies that interest under Section 16 of the MSME Act must be calculated monthly at three times the RBI rate prevailing at the end of each month, not a fixed rate from the appointed day. The ruling eliminates the need for prior conciliation for repeated claims, strengthening MSMEs' recovery rights against delayed payments.

Bombay High Court rules that Micro and Small Enterprises Facilitation Councils must first conduct conciliation under Section 18(2) of the MSME Act before proceeding to arbitration. Failure to comply renders the arbitration order void, reinforcing strict statutory adherence for MSME disputes.

Bombay High Court holds that only MSMEs with loan limits up to Rs.25 crores qualify for RBI's revival framework; exposure means sanctioned limit, not outstanding amount.

Bombay High Court dismisses repeated writ petitions on identical issues, affirming that res judicata applies even against law when issues have been finally decided.

Bombay High Court holds that co-operative banks must refer MSME loan defaults to RBI's revival committee before initiating recovery, affirming statutory protections under MSME Act.