In Brief
Seven civil appeals involving common questions of law regarding the interaction between the Arbitration and Conciliation Act, 1996 and the Micro, Small and Medium Enterprises Development Act, 2006 were heard together. The Supreme Court held that the MSMED Act, 2006—a special enactment for protecting micro and small enterprises—prevails over the general Arbitration Act. A party to a dispute concerning unpaid dues can invoke the MSMED Facilitation Council despite an existing arbitration agreement. The Council can conduct both conciliation and arbitration despite Section 80 of the Arbitration Act barring conciliators from becoming arbitrators. However, a party must have been registered as a 'supplier' on the contract date; subsequent registration applies prospectively only. Most appeals were dismissed; two were allowed, one disposed of.
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