MSEFC Must Decide Question On Limitation Before Adjudicating Dispute On Merits: Telangana High Court

The Telangana High Court ruled that questions of limitation must first be decided by the Micro and Small Enterprises Facilitation Council (MSEFC) before adjudicating disputes on merits. The case involved conflicting claims of a time-barred payment dispute, which the court directed the MSEFC to assess before proceeding. The judgment clarifies the procedural hierarchy under the MSME Development Act, ensuring that limitation issues are addressed early in the dispute resolution process. Legal experts regard this ruling as a step toward streamlining the resolution of MSME disputes, emphasizing the importance of procedural clarity. It advises businesses to be mindful of limitation periods while filing claims or raising defenses. This decision aligns with broader efforts to improve the efficiency of the MSME dispute resolution framework, balancing procedural consistency with the need for timely settlements.