In Brief
GR Green Life Energy Pvt Ltd, a contractor, and Leitwind Shriram Manufacturing engaged in a wind farm project development agreement that contained an arbitration clause. A dispute arose over outstanding dues of over ₹3.26 crores. The contractor registered under the MSMED Act and sought relief before the Facilitation Council, but the respondent sought arbitrator appointment under the Arbitration and Conciliation Act, 1996. The Supreme Court held that the MSMED Act does not apply when an arbitration agreement exists and counter-claims are involved, as the MSMED Act has no provision to address counter-claims. The Court appointed a sole arbitrator by mutual consent to resolve all claims and counter-claims, and disposed of the MSMED application.
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