Ad-Hoc Arbitrator Can Grant Interest U/S 16 Of MSMED Act, Even If Reference Was Not Made To MSME Council: Delhi High Court

The Delhi High Court ruled that ad-hoc arbitrators possess the authority to award interest under Section 16 of the MSMED Act, regardless of whether the dispute was referred to the MSME Facilitation Council. This judgment ensures MSMEs can claim statutory interest benefits through various arbitration forums. The decision strengthens payment protection mechanisms for small businesses and clarifies that MSMEs aren't restricted to the Facilitation Council for seeking interest on delayed payments.