Micro, Small and Medium Enterprises Development Act, 2006

The petitioner, an MSME, defaulted on a loan from NKGSB Co‑operative Bank and its account was classified as a non‑performing asset (NPA) with a demand notice issued under Section 13(2) of the SARFAESI Act. The petitioner contended that, under the 2015 Notification containing the ‘Framework for Revival and Rehabilitatio…

M/s Coromandal Sacks supplied HDPE bags to Fertilizer Corporation of India Ltd (FCIL) and sued for recovery of unpaid amounts, alleging price differences, liquidated damages, penalties and loss of unsold bags. FCIL contended it was a sick industrial company under the Sick Industrial Companies (Special Provisions) Act, …

Lifecare Innovations Pvt. Ltd., a micro‑enterprise manufacturing a specialised liposomal drug, was repeatedly disqualified from government tenders because the Notice Inviting Tender (NIT) imposed mandatory minimum turnover requirements that it could not meet. The petitioners argued that such clauses violated Articles 1…

The appellant, a borrower, defaulted on a loan from The Federal Bank and the bank classified the loan as a Non‑Performing Asset, invoking SARFAESI provisions. The High Court ordered the appellant to pay Rs.2 crore immediately and the balance in twelve instalments, which the appellant challenged by a Special Leave Petit…

The appeal concerned whether a writ petition under Article 226 of the Constitution can be filed against an order of the Micro and Small Enterprises Facilitation Council (MSEFC) made under Section 18 of the MSMED Act, 2006, and if so, under what circumstances. The Supreme Court examined earlier conflicting judgments, no…

Electrosteel Steel Ltd. (now ESL Steel Ltd.) filed a petition under Article 227 challenging an order that directed it to comply with an arbitral award dated 06.07.2018 passed by the West Bengal MSME Facilitation Council in favour of Ispat Carrier Pvt. Ltd. The award was rendered after the corporate debtor’s insolvency …

The Supreme Court examined whether mobile service providers (MSPs) could claim CENVAT credit on excise duties paid for mobile towers and prefabricated buildings (PFBs) used in their networks. The dispute arose from conflicting decisions of the Bombay High Court, which held the towers and PFBs to be immovable property a…

The appellant, Sonali Power Equipments, supplied transformers to the Maharashtra State Electricity Board between 1993 and 2004 and faced delayed payments. It referred the dispute to the Micro and Small Enterprises Facilitation Council under Section 18 of the MSMED Act, obtaining an award in 2010, which the respondents …

The appellant, a MSME supplier based in Delhi, entered into a contract with ISRO for construction of staff quarters, which contained a clause fixing Bengaluru as the seat of arbitration. Disputes arose and the supplier invoked the Micro, Small and Medium Enterprises (Development) Act, 2006, prompting the Delhi Facilita…

NBCC (India) Ltd., a micro‑small enterprise, entered into several construction contracts with the State of West Bengal and later filed a memorandum under Section 8 of the MSMED Act, 2006 after the contracts were executed. The enterprise then referred a payment dispute to the Micro and Small Enterprises Facilitation Cou…

The Odisha State Financial Corporation (OSFC) financed a bleaching powder unit that defaulted, leading to its possession of the unit and subsequent litigation. Respondent Vigyan Chemical Industries sued the defaulting borrower and later impleaded OSFC, claiming repayment with interest calculated under the repealed Inte…

The appellants, MSME borrowers, challenged the classification of their loan accounts as non‑performing assets by Canara Bank and other banks, contending that the banks had violated the procedural framework prescribed in the Government’s 29 May 2015 Notification under Section 9 of the MSMED Act. The High Court had held …