MSME Award Appeal here we mean and discuss Appeal against the order, decree or Award arising out of the statutory arbitration proceeding under MSME Act. There have been challenges to this provision in courts, where the contentions were raised that this provision is not mandatory and there can be deviation by the Appellate court. Thus, the Supreme Court has made it clear that the provision of section 19 of the MSME Act is mandatory in nature..    

How can parties go to arbitration ?

Author- admin
Date:May 27, 2022

How can parties go to arbitration ?

For adjudication of dispute through arbitration, as per section 7 of the Arbitration & Conciliation Act, 1996 an arbitration agreement must exists between the parties.

As per section 7 of the Arbitration & Conciliation Act, 1996

1. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.

2. An arbitration agreement shall be in writing.

3. An arbitration agreement is in writing if it is contained in—

(a) a document signed by the parties;

(b) an exchange of letters, telex, telegrams or other means of telecommunication including

communication through electronic means which provide a record of the agreement; or

(c) an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.

4. The reference in a contract to a document containing an arbitration clause constitutes an

arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.

Thus, there has to be an arbitration agreement as per the scheme of section 7 for a parties to go for arbitration.

Sometimes court may refer disputes to arbitration. In case commercial transaction where supplier or service provider is Micro, Small or Medium enterprises, the matter is referred to arbitration.