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TMI Blog2025 (3) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... ct is exercised by the council. Further, the Supreme Court in Gujarat State Civil Supplies Corporation Ltd. v. Mahakali Foods (P) Ltd. [2022 (11) TMI 91 - SUPREME COURT] has categorically held that the issue of lack of inherent jurisdiction can be decided by the Arbitral Tribunal appointed under the MSMED Act, which by virtue of Section 18(3) of MSMED Act is competent to rule on its own jurisdiction as also the other issues in view of Section 16 of the Arbitration and Conciliation Act, 1996. Consequently, the sequitur is that the decision of the Arbitral Tribunal on the issue of jurisdiction would be amendable to challenge under Section 34 of the Arbitration and Conciliation Act, 1996. Conclusion - MSEFC has the jurisdiction to refer disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices, Government of NCT Delhi ("DGHS") for construction of 200 beds at Ambedkar Nagar, Delhi and one Pratibha Industries Ltd. became the lowest bidder for the said work. He states that an Agreement was executed between Pratibha Industries Ltd. and the Appellant. 5. He further states that Pratibha Industries Ltd. issued a letter of Award in favour of Respondent no. 2 to execute the electrical work. 6. He states that Respondent No. 2 filed an application for recovery of amounts due before the Micro Small & Medium Enterprises Facilitation Council ("MSEFC"), Delhi on 19th August, 2021 and notice was issued to both the Appellant and Respondent no. 2 to appear before MSEFC, Delhi. He states that subsequently, Respondent No. 2 filed a Writ Petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the judgment of the Supreme Court in Magic Eye Developers Pvt. Ltd. v. M/s. Green Edge Infrastructure Pvt. Ltd. & Ors. Etc., SLP(C) Nos. 18339- 42/2021, wherein the Supreme Court has held as under: "5. Heard. The short question which is posed for the consideration of this Court is, the jurisdiction of the referral court at pre-referral stage when the issue with respect to the existence and validity of an arbitration agreement is raised. 5.1 While considering the aforesaid issue Section 11(6A) of the Arbitration Act which has been added through Arbitration and Conciliation Amendment Act, 2015 is required to be read which reads as follows: - "(6-A) The Supreme Court or, as the case may be, the High Court, while considering any appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the same has to be to conclusively decided by the referral court at the referral stage itself. Now, so far as the non- arbitrability of the dispute is concerned, even as per the law laid- down by this Court in the case of Vidya Drolia (supra), the court at pre-referral stage and while examining the jurisdiction under Section 11(6) of the Act may even consider prima facie examining the arbitrability of claims. As observed, the prima facie review at the reference stage is to cut the deadwood and trim off the side branches in straightforward cases where dismissal is barefaced and pellucid and when on the facts and law the litigation must stop at the first stage. However, so far as the dispute with respect to the existence and validity of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that there is a privity of contract between the appellant and respondent No.2 inasmuch as, direct payments of Rs. Six (6) Crores Eight two (82) Lakhs was released by the appellant to respondent No.2. He further states that the respondent No.2 was registered as MSME way back in the year 2016. 13. Having heard learned counsel for the parties, this Court is of the view that Section 18 of the MSMED Act, 2006 is not akin to Section 11(6) of the Arbitration and Conciliation Act, 1996. It is pertinent to mention that while the power under Section 11(6) is exercised by a referral court, the reference under the MSMED Act is exercised by the council. 14. Further, the Supreme Court in Gujarat State Civil Supplies Corporation Ltd. v. Mahakali Food ..... X X X X Extracts X X X X X X X X Extracts X X X X
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