Summary
A consultancy challenged quashing of Facilitation Council notices in its dispute with a Swiss medical-equipment company. The agreement preceded its MSME registration and chose Indian law governing the parties’ rights. In the peculiar contractual circumstances, the Court upheld the conclusion that the Council lacked jurisdiction. It expressly left open the larger questions concerning overseas buyers receiving services in India and suppliers obtaining registration after contracting.
Issues
- Whether the Facilitation Council had jurisdiction in light of the agreement’s choice-of-law clause and the consultancy’s subsequent registration.
- Whether the broader questions of foreign buyers and post-contract MSME registration required decision.
Provisions considered
- Sections 2(n), 8 and 18, Micro, Small and Medium Enterprises Development Act, 2006The Court considered supplier registration together with the contractual terms and upheld lack of Council jurisdiction on the peculiar facts, while reserving the larger questions. (¶¶ 8.1, 8.3, 9)
Held
- The agreement was executed on 24 August 2020, before the appellant’s registration on 28 August 2020. Applying the choice-of-law clause and the registration provisions in the peculiar circumstances, the Court upheld the ultimate conclusion that the Council lacked jurisdiction over this dispute. (¶¶ 8.1, 9)
- The Court did not finally decide whether an overseas buyer who receives services or conducts business in India under an Indian contract falls within the statutory mechanism. That larger issue was expressly reserved. (¶ 8.3)
- The broader issue whether subsequent MSME registration could permit Council jurisdiction was also left for an appropriate case, bearing in mind the statutory provisions and the cited decisions. The result therefore did not resolve every case of registration after contracting. (¶ 8.3)
Result
Appeal dismissed without costs. The High Court’s ultimate conclusion that the Council lacked jurisdiction over this dispute was upheld, with the identified larger questions expressly left open.