Case Law Analysis
|Delhi High Court
Section 18 MSME Act | Registration Operates Prospectively; Pre-Registration Claims Not Maintainable Before MSEFC - Belated Registration After Abandoning Arbitration Barred as Forum Hunting : Delhi HC
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.