Orissa High Court Holds MSEFC Awards Can Only Be Challenged Under Section 34 Of The Arbitration Act

Introduction

The intersection of special statutes, such as the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), and general arbitration law under the Arbitration and Conciliation Act, 1996, continues to generate jurisdictional questions. A recent judgment by the Orissa High Court in M/s Odisha Mining Corporation Ltd. v. Union of India & Ors. (W.P.(C) No. 22236 of 2014) addresses such a conflict.

The Court examined whether an arbitral award passed by the Micro and Small Enterprises Facilitation Council (MSEFC), Thane, challenged on grounds of lack of jurisdiction, breach of natural justice, and procedural impropriety, could be quashed through a writ petition. The judgment not only clarifies the territorial jurisdiction of MSEFCs but also reinforces the statutory supremacy of Section 34 of the Arbitration Act as the sole remedy against MSME arbitral awards.