Micro, Small and Medium Enterprises Development Act, 2006

The Supreme Court examined a series of appeals arising from disputes between buyers and micro‑small suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and the Arbitration and Conciliation Act, 1996. The core issue was whether Chapter V of the MSMED Act, which provides a special, t…

The Airport Authority of India (AAI) issued Request for Proposals for ground handling services at various airport groups, setting eligibility criteria that included regional clustering, a 36‑month experience requirement for scheduled flights, and a minimum annual turnover of Rs 30 crore (later reduced to Rs 18 crore). …

Shree Aashraya Infra‑Con Ltd was placed under corporate insolvency resolution process (CIRP) and the appointed resolution professional, Hari Babu Thota, submitted a resolution plan drafted by the promoters and approved by the Committee of Creditors. The National Company Law Tribunal (NCLT) dismissed the plan, holding t…

The case concerned disputes arising under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) where a supplier (Silpi Industries) claimed unpaid amounts from Kerala State Road Transport Corporation (KSRTC) and the corporation raised counter‑claims. The issues before the Supreme Court were whether …

The petitioner, an MSME, defaulted on a loan from NKGSB Co‑operative Bank and its account was classified as a non‑performing asset (NPA) with a demand notice issued under Section 13(2) of the SARFAESI Act. The petitioner contended that, under the 2015 Notification containing the ‘Framework for Revival and Rehabilitatio…

M/s Coromandal Sacks supplied HDPE bags to Fertilizer Corporation of India Ltd (FCIL) and sued for recovery of unpaid amounts, alleging price differences, liquidated damages, penalties and loss of unsold bags. FCIL contended it was a sick industrial company under the Sick Industrial Companies (Special Provisions) Act, …

The appellants, Pahwa Plastics Pvt. Ltd. and related firms, are MSME manufacturers of formaldehyde that obtained Consent to Establish and Consent to Operate from the Haryana State Pollution Control Board but did not secure prior environmental clearance (EC) as required by the 2006 EIA Notification. The Haryana governme…

The Supreme Court examined the constitutional validity of several provisions of the Insolvency and Bankruptcy Code, 2016, including the classification of financial versus operational creditors, the powers of the resolution professional, the evidentiary status of private information utilities, and the requirements of Se…

Lifecare Innovations Pvt. Ltd., a micro‑enterprise manufacturing a specialised liposomal drug, was repeatedly disqualified from government tenders because the Notice Inviting Tender (NIT) imposed mandatory minimum turnover requirements that it could not meet. The petitioners argued that such clauses violated Articles 1…

The appellant, a borrower, defaulted on a loan from The Federal Bank and the bank classified the loan as a Non‑Performing Asset, invoking SARFAESI provisions. The High Court ordered the appellant to pay Rs.2 crore immediately and the balance in twelve instalments, which the appellant challenged by a Special Leave Petit…

The dispute involved M/s. Vijeta Construction alleging non‑payment of Rs.2,44,92,846 for TMT bars supplied by M/s. Indus Smelters, which had paid only Rs.1,24,50,000. Indus Smelters approached the Micro and Small Enterprises Facilitation Council under the MSMED Act, which dismissed the application on the ground of limi…

The appellant contractor and respondent entered a development agreement for a wind‑farm project that contained an arbitration clause providing for a three‑member tribunal, each party appointing one arbitrator who would then select a presiding arbitrator. A dispute arose over payments; the respondent invoked arbitration…

The appeal concerned whether a writ petition under Article 226 of the Constitution can be filed against an order of the Micro and Small Enterprises Facilitation Council (MSEFC) made under Section 18 of the MSMED Act, 2006, and if so, under what circumstances. The Supreme Court examined earlier conflicting judgments, no…

Electrosteel Steel Ltd. (now ESL Steel Ltd.) filed a petition under Article 227 challenging an order that directed it to comply with an arbitral award dated 06.07.2018 passed by the West Bengal MSME Facilitation Council in favour of Ispat Carrier Pvt. Ltd. The award was rendered after the corporate debtor’s insolvency …

The Supreme Court examined whether mobile service providers (MSPs) could claim CENVAT credit on excise duties paid for mobile towers and prefabricated buildings (PFBs) used in their networks. The dispute arose from conflicting decisions of the Bombay High Court, which held the towers and PFBs to be immovable property a…

Anita Merchant booked three flats from Suneja Towers Private Limited, paid 60% of the price, but the builder failed to deliver possession even after the agreed period, leading her to file consumer complaints. The District Forum dismissed the complaints, but the State Consumer Commission reversed the decision, ordering …

The Supreme Court examined a dispute over a government tender for polyester hologram excise labels, where two unsuccessful bidders, Kumbhat Holographics and Alpha Lasertek India LLP, alleged that the tender specifications were tailored to favour the successful bidders, UFLEX Ltd. and Montage Enterprises. The Court held…

The appellant, Sonali Power Equipments, supplied transformers to the Maharashtra State Electricity Board between 1993 and 2004 and faced delayed payments. It referred the dispute to the Micro and Small Enterprises Facilitation Council under Section 18 of the MSMED Act, obtaining an award in 2010, which the respondents …

Power Machines India Ltd obtained an arbitral award under the Micro, Small and Medium Enterprises Development Act, 2006 directing it to pay a sum to Lakshmi Engineering Industries. The State of Madhya Pradesh, invoking Rule 5 of the Madhya Pradesh MSME Facilitation Council Rules, 2006, sought recovery of the award amou…

Jharkhand Urja Vikas Nigam Ltd, the successor to Jharkhand State Electricity Board, entered into a contract with M/s Anamika Conductors Ltd for supply of conductors. The supplier, claiming payment, approached the Rajasthan Micro and Small Enterprises Facilitation Council under Section 18 of the MSMED Act. The Council i…

The appellant, a MSME supplier based in Delhi, entered into a contract with ISRO for construction of staff quarters, which contained a clause fixing Bengaluru as the seat of arbitration. Disputes arose and the supplier invoked the Micro, Small and Medium Enterprises (Development) Act, 2006, prompting the Delhi Facilita…

The Supreme Court considered appeals filed by Newtech Promoters and Developers challenging orders of the Uttar Pradesh Real Estate Regulatory Authority that directed refund of home‑buyers' money with interest. The promoters argued that the authority, a single member, lacked jurisdiction, that the Real Estate (Regulatio…

NBCC (India) Ltd., a micro‑small enterprise, entered into several construction contracts with the State of West Bengal and later filed a memorandum under Section 8 of the MSMED Act, 2006 after the contracts were executed. The enterprise then referred a payment dispute to the Micro and Small Enterprises Facilitation Cou…

The Gujarat State Disaster Management Authority (appellant) was ordered by a Facilitation Council under the MSME Act to pay Rs 105,053,387 to M/s Aska Equipments Ltd (respondent). The appellant sought to set aside the award under Section 34 of the Arbitration & Conciliation Act, 1996 and, pursuant to Section 19 of the …

Bank of India filed a recovery suit under the RDDBFI Act and, after auctioning the mortgaged property, appointed Yadav Consultancy Services as Court Commissioner to safeguard the property. The bank later discharged the commissioner and was directed by the Recovery Officer to continue paying his security charges, which …

The Odisha State Financial Corporation (OSFC) financed a bleaching powder unit that defaulted, leading to its possession of the unit and subsequent litigation. Respondent Vigyan Chemical Industries sued the defaulting borrower and later impleaded OSFC, claiming repayment with interest calculated under the repealed Inte…

Kotak Mahindra Bank Ltd., a secured creditor, sought possession of mortgaged assets of One Mission Vivacare under the SARFAESI Act after the borrower defaulted. The District Magistrate ordered possession, but the Naib Tehsildar refused, invoking a recovery award under the MSMED Act. The High Court Division Bench held t…

SnehaDeep Structures Private Ltd., a small‑scale industrial undertaking, obtained an arbitral award for interest on delayed payment from Maharashtra Small Scale Industries Development Corporation Ltd. The corporation filed an application under Section 34 of the Arbitration and Conciliation Act, 1996 to set aside the aw…

The Uttar Pradesh government awarded a contract for Ayurvedic medicines exclusively to Indian Medicines Pharmaceutical Corporation Ltd (IMPCL) without inviting tenders, invoking paragraph 4(vi)(b) of the National AYUSH Mission Operational Guidelines. Kerala Ayurvedic Co‑operative Society challenged the award as arbitra…

The appellants, MSME borrowers, challenged the classification of their loan accounts as non‑performing assets by Canara Bank and other banks, contending that the banks had violated the procedural framework prescribed in the Government’s 29 May 2015 Notification under Section 9 of the MSMED Act. The High Court had held …