Arbitration Clause in GeM Contract Becomes Inoperative Once Section 18 of MSMED Act Is Invoked Before MSME Council: Gauhati High Court

The Gauhati High Court has held that Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) provides a statutory dispute resolution mechanism that overrides any arbitration clause in contracts, including contracts under Government e-Marketplace (GeM). Justice Manish Choudhury delivered this significant ruling, emphasizing that once a supplier invokes the statutory forum, contractual arbitration provisions lose their primacy. Background of the Case The case arose from…