Legal Update| Supreme Court View On Msme Act vs Arbitration Act

The Supreme Court in a recent case ofRamkrishna Electricals Limited Vs Maharashtra State Electricity Distribution Company Limited & Another(along with six other appeals) held that Section 15 to Section 23 of the Micro, Small & Medium Enterprises Development Act, 2006 (MSME Act) would override provisions of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Further, the Apex Court also held that a party would not be precluded from making a reference to the Council under the MSME Act even if an independent arbitration agreement existed between the parties. The Apex Court further held that that the Council itself could take up the dispute for arbitration and act as an arbitrator even if when the Council itself had conducted the conciliation proceedings under the MSME Act.