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

The Delhi High Court has ruled that the mandate of an MSME (Micro, Small and Medium Enterprises) Facilitation Council does not automatically terminate after a 90-day delay in arbitration referrals. This decision clarifies that procedural delays in referring disputes for arbitration under the MSMED (Micro, Small and Medium Enterprises Development) Act do not invalidate the Council's jurisdiction. The court emphasized that the primary objective of the MSMED Act is to ensure expeditious resolution of disputes involving MSMEs, and strict adherence to such a time limit without considering the reasons for delay would defeat the purpose of the Act.