MSME Act Doesn't Bar Independent Arbitration Under Arbitration And Conciliation Act Based On Agreement Clause: Calcutta High Court

The Calcutta High Court ruled that the Micro, Small, and Medium Enterprises (MSME) Act does not bar independent arbitration under the Arbitration and Conciliation Act if an agreement clause provides for it. The case involved a dispute where the applicability of the MSME Act was challenged in the context of an arbitration agreement. The court held that while the MSME Act provides for specific dispute resolution mechanisms, it does not preclude parties from agreeing to arbitration under the Arbitration and Conciliation Act. This decision clarifies the relationship between the two acts and affirms the validity of arbitration agreements in MSME disputes.