Writ Petition Against Order Under Section 16 Of The Arbitration Act Held Not Maintainable: Telangana High Court

Introduction

In VKA Constructions v. State of Telangana [Writ Petition No. 956 of 2025], the Telangana High Court dismissed a writ petition challenging an order of the Micro and Small Enterprises Facilitation Council (MSEFC) that declined jurisdiction to adjudicate a dispute, holding that such an order is appealable under Section 37(2)(a) of the Arbitration and Conciliation Act, 1996. The petitioner had sought relief under Article 226 of the Constitution of India, contending that the Council had erroneously declined jurisdiction on the ground that the contract in question was a works contract, and therefore non-arbitrable under the MSME Act.

The judgment reiterates the settled principle that where an effective alternative statutory remedy exists, writ jurisdiction should not be invoked except in exceptional cases. It also affirms that the question whether a contract is a works contract or otherwise is a mixed question of fact and law, which must ordinarily be