Arbitration Agreement can be Overridden by MSMED Act: Madras High Court

Dismissing a writ petition, filed against the overriding effect of Sec. 18, which provides for resolution of dispute by reference to a Facilitation Council, of Micro Small and Medium Enterprises Development Act, 2006 (‘MSMED/ the Act’) in case of an already existing arbitration clause in the agreement, between parties, the Madras High Court (‘HC’) stating Sec. 24, which provides overriding powers to Sec. 15-23 of the Act, held that “it has been well settled that validity of a contractual arbitration will be superseded by the provisions of the MSMED Act”.