Can Unregistered MSMEs Avail Dispute Settlement Under S.18 MSMED Act? Supreme Court Refers To Larger Bench

The Supreme Court referred to a larger bench the issue of whether unregistered Micro, Small, and Medium Enterprises (MSMEs) can avail themselves of dispute settlement mechanisms under Section 18 of the MSMED Act. The Act provides for the facilitation of delayed payment claims, but the question arose on whether unregistered MSMEs are eligible for this benefit. The Court recognized the importance of resolving this matter for the proper implementation of the Act and decided to refer it to a larger bench for further deliberation. The decision will have significant implications for the dispute resolution processes involving MSMEs.