MSMED Act Prevail Over Arbitration Act, Seller Can Approach Facilitation Council Even In Presence Of Arbitration Act: Telangana High Court

The Telangana High Court ruled that under the Micro, Small and Medium Enterprises Development Act (MSMED Act), MSME sellers have the right to approach the Facilitation Council before invoking arbitration proceedings under the Arbitration Act. This decision underscores the MSMED Act's precedence in dispute resolution for MSMEs, allowing them to seek redressal through the Facilitation Council before resorting to arbitration. The court clarified that such provisions aim to protect MSMEs' interests and ensure prompt settlement of disputes, aligning with the legislative intent of supporting MSMEs in their business transactions.