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..             
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MSME Facilitation Council Territorial Jurisdiction


Author- admin
Date:April 7, 2023

MSME Facilitation Council Territorial Jurisdiction – Where it lies?

MSME Law Notes by NB Associates

According to Section 18(4) of the Micro, Small and Medium Enterprises Development Act, 2006, the Micro and Small Enterprises Facilitation Council (MSEFC) has the jurisdiction to act as an Arbitrator or Conciliator in a dispute between an MSME supplier and a buyer located anywhere in India, despite any other law in force.

However, the territorial jurisdiction of the MSEFC is limited to the state or union territory where the MSME supplier is located.

For instance, if an MSME supplier in Delhi has a dispute with a buyer in another state regarding delayed payment, the MSME can approach the MSEFC in Delhi for resolution.

We are among the top Law firms / Lawyers providing legal consultancy related to MSME dues recovery and handling related cases Pan India.

For any kind of legal consultancy, our client may contact us at the following number or email id :

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It’s essential to note that the MSEFC is established under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, and it can only resolve disputes related to delayed payments to MSMEs. In case of other disputes or claims, MSMEs may have to approach other forums or authorities as per the applicable laws and regulations.

Thus, the MSME supplier can file the dispute claim in the jurisdiction where they are located, and the conciliation or arbitration proceedings will also take place in the same location.

In conclusion, Section 18(4) of the MSMED Act, 2006 provides the MSEFC with the jurisdiction to act as an Arbitrator or Conciliator in disputes between MSMEs and buyers located anywhere in India. However, the territorial jurisdiction of the MSEFC is limited to the state or union territory where the MSME supplier is located.

The MSEFC provides a mechanism for the speedy and cost-effective resolution of disputes related to delayed payments to MSMEs.

The MSEFC’s success in resolving disputes has been a significant boost to the MSME sector, and it has helped in promoting a culture of entrepreneurship and innovation.

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