Statutory Authority Can Only Address Disputes If Supplier Was Registered Under MSMED Act During Relevant Period: Madras HC

A Bench of Justice K. Kumaresh Babu said, “having been prima facie satisfied with the claim made by the petitioner that the statutory authority under the MSMED Act, 2006 would only have the jurisdiction to entertain a dispute when the supplier had been registered under the MSMED Act, 2006 at that relevant point of time, I am inclined to order these applications as prayed for.”

The Court issued this ruling while granting an application from Swiss Garniers Genexiaa Sciences Pvt Ltd, allowing them to waive the requirement of a 75% pre-deposit under Section 19 of the Act.

The Court expressed its preliminary satisfaction with Swiss Garniers' claim that the authority's jurisdiction is contingent upon the supplier's registration status under the MSMED Act. The Court emphasized that the statutory authority cannot adjudicate disputes unless the supplier is registered at the time the dispute arises.

Swiss Garniers argued that the purchase orders in question were from the 2016-2017 period, during which the respondent was not registered under the MSMED Act. They pointed out that he did not register until 2018, making any reference to the statutory authority inappropriate and beyond its jurisdiction.

However, the Court held that because respondent was not registered under the MSMED Act during the relevant timeframe, the statutory authority lacked the jurisdiction to address the dispute.

Cause Title: Swiss Garniers Genexiaa Sciences Pvt. Ltd. v. Avant Garde Healthcare and Engg Solutions Pvt. Ltd.

Appearance:

Petitioner: Senior Counsel Sricharan Rangarajan, for Krithika Jaganathan

Respondents: Advocate P.V. Balasubramanian, for J. Lenin