The Overriding Effect Of Special Laws Over General Laws

The Hon'ble Supreme Court of India, in the case of M/S Harcharan Dass Gupta v Union of India delivered a significant ruling affirming the precedence of the Micro, Small and Medium Enterprises Development Act 2006 (MSMED Act) over Arbitration and Conciliation Act 1996 (A&C Act) in disputes involving Micro, Small, and Medium Enterprises (MSMEs). This judgment clarifies the legal framework governing the dispute resolution process for (MSMEs) and also highlights the special protections provided by special laws, which would have an overriding effect over general laws.

Factual Background

The present case arises from a contractual dispute between the Indian Space Research Organisation (ISRO) and the appellant, a supplier duly registered under the MSMED Act of 2006. Pursuant to a tender floated by ISRO for the construction of staff quarters in New Delhi, the appellant herein was selected as a successful bidder, following which a formal Agreement was executed between