Limitation Act Not Applicable to Conciliation Under MSMED Act, But Applies to Arbitration: Supreme Court

In a significant ruling impacting Micro, Small, and Medium Enterprises (MSMEs), the Supreme Court of India clarified that time-barred claims by MSME suppliers can still be recovered through conciliation under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), but not through arbitration. The verdict was delivered in the case of M/S SONALI POWER EQUIPMENTS PVT. LTD. VERSUS CHAIRMAN, MAHARASHTRA STATE ELECTRICITY BOARD, MUMBAI & ORS., with the…