MSME Council Cannot Reject Arbitrable Claims Without Providing Any Reasons When Meditation U/S 18 Of MSME Act Has Failed: Calcutta HC

The Calcutta High Court ruled that the MSME Council cannot reject arbitrable claims without providing any reasons, especially when mediation under Section 18 of the MSME Act has failed. The court emphasized the Council's duty to provide a reasoned order, even when refusing to take up a case for arbitration. The failure of mediation does not automatically lead to the rejection of the claim without proper justification. This decision ensures accountability and transparency in the MSME Council's handling of arbitration matters.