GeM Arbitration Clause Becomes Inoperative After S.18 MSMED Act Is Invoked

The article details a Gauhati High Court ruling that once a supplier invokes Section 18 of the MSMED Act before the MSME Council, any arbitration clause in a GeM contract becomes inoperative. The Court held that the statutory mechanism—conciliation followed by possible adjudication—is mandatory and prevails over contractual arbitration. The report describes facts, statutory interpretation, and judicial reasoning highlighting the protective purpose of the MSMED Act. It explains the implications for government procurement, disputes involving MSMEs, and how contractual arbitration clauses cannot circumvent statutory forums designed to offer quicker and sector-specific resolution.