Mandate Of MSME Council Not Automatically Terminated For Failure To Refer Dispute To Arbitration Within 90 Days: Delhi High Court

Delhi HC: MSME Council's Mandate Not Automatically Terminated After 90-Day Delay The Delhi High Court ruled that the mandate of an MSME (Micro, Small and Medium Enterprises) Facilitation Council to refer a dispute to arbitration does not automatically terminate if the referral isn't made within the stipulated 90 days under Section 18(5) of the MSMED Act. The court clarified that the time limit is directory, not mandatory, emphasizing the need for a pragmatic approach to ensure MSMEs can effectively resolve disputes through the Council, promoting the legislative intent of facilitating speedy and cost-effective resolution for small businesses.