In Brief
Two batches of civil appeals challenged High Court orders on disputes involving small enterprises and buyers under the Micro, Small and Medium Enterprises Development Act, 2006. The Supreme Court held that: (1) the Limitation Act, 1963 applies to arbitration proceedings under the MSMED Act; (2) counter-claims are maintainable in such proceedings as the MSMED Act incorporates the Arbitration Act's provisions; and (3) a supplier must be registered under the MSMED Act at the time of contract/supply to claim its benefits—later registration does not operate retrospectively. The Court dismissed the appeals, recognizing the MSMED Act as a special beneficial statute that takes precedence over the general Arbitration Act.
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