Supreme Court Of India
Uday Umesh Lalit,
Bela M. Trivedi
(A) Arbitration and Conciliation Act (26 of 1996) , S.2(1)(b), S.7, S.8— Micro, Small and Medium Enterprises Development Act (27 of 2006) , S.18, S.24— Provisions of Act, 2006 – Overriding effect – MSMED Act, 2006 being special law and Arbitration Act, 1996 being general law, provisions of MSMED Act would have precedence over or prevail over Arbitration Act, 1996 – Even if Arbitration Act, 1996 is treated as special law, then also MSMED Act, 2006 having been enacted subsequently in point of time, it would have overriding effect in view of S. 24 of the MSMED Act, 2006.
The very object of enacting MSMED Act, 2006 was to facilitate the promotion and development, and enhance the competitiveness of micro, small and medium enterprises. The Act also aimed to ensure timely and smooth flow of credit to the micro, small and medium enterprises, and to minimize the incidence of sickness. One of the main objects of the Act was to delete the Interest on Delayed Payments to Small Scale and Ancillary Industry Undertakings Act, 1993, and to include stringent provisions as also to provide dispute resolution mechanism for resolving the disputes of non-payment of dues to the micro and small enterprises. As against above, Act, 1996, was enacted to consolidate and amend the law relating to the domestic arbitration, international commercial arbitration and enforcement of foreign a….
Enter your contact details.