Bombay High Court

M/S. NILAY ENTERPRISEversusM/S. OMKAR PUBLICITY PROMOTIONS AND ANR

Decided: 18 August 2026
Disposal: Allowed

Holding

The respondent could not invoke the MSMED Act, 2006 for claims based on pre‑registration transactions.

Summary

The petition filed by M/s. Nilay Enterprise challenged the lower court's view that the respondent could invoke the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 for claims arising before the unit's registration under the Act. The High Court examined whether the respondent could rely on the MSMED Act for pre‑registration transactions. It held that the respondent could not invoke the Act for such claims. Consequently, the court ordered a correction to the earlier judgment to reflect this reasoning, while leaving the rest of the order unchanged. The praecipe was thereafter disposed of.

Issues considered

Whether a party can invoke the provisions of the MSMED Act, 2006 for claims arising from transactions that occurred before the unit was registered under the Act

Legislation cited

Micro, Small and Medium Enterprises Development (MSMED) Act, 2006

Subjects

MSMED Act
pre‑registration claims
judgment correction
praecipe
Civil Appellate Jurisdiction

Judgment

                                                                         P-1-WP-6888-2024.DOC




                                                                                     Rekha Patil

                              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                        CIVIL APPELLATE JURISDICTION
                                       WRIT PETITION NO. 6888 OF 2024
                      M/s. Nilay Enterprise                                     …Petitioner
                            Versus
                      M/s. Omkar Publicity Promotions and Anr.               …Respondents


                      MS. Urusah M. I. i/b Dave & Co., for the Petitioner.


                                            CORAM:        SUMAN SHYAM &
                                                          ADVAIT M. SETHNA, JJ.
                                            DATED:        24th AUGUST, 2026.
                      PC:-


                      1.     Not on board. Upon mentioning, taken on board.

                      2.     The praecipe has been moved for speaking to the minutes of
                      the Judgment dated 18th August, 2026. In paragraph No. 17, 5th
                      line, the second sentence be corrected as follows:-

                             “If that be so, in the facts of the present case, as noted
                             above, the Respondent No.1, in our view, could not
                             have invoked the provisions of MSMED Act of 2006 by
                             making an application to the Respondent No.2 with
                             regard to claims which were admittedly based on
                             transactions which took place on date/dates, which
                             were prior to the registration of the Unit as the MSME
                             Unit under the MSMED Act of 2006.”
REKHA
PRAKASH
PATIL
Digitally signed by
REKHA PRAKASH
PATIL
Date: 2026.08.24
18:09:10 +0530




                                                     Page 1 of 2
                                             P-1-WP-6888-2024.DOC




3.    The Judgment dated 18th August, 2025 be corrected
accordingly and uploaded on the website.    Rest of the order
remains as it is.

4.    Praecipe stands disposed of.



(ADVAIT M. SETHNA, J.)                     (SUMAN SHYAM, J.)
                                                                {




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