Supreme Court Refers Key Issues on Writ Jurisdiction Under MSME Act to Constitutional Bench

The Supreme Court has referred critical legal questions on the maintainability of writ petitions under Article 226 against orders passed by the Micro and Small Enterprises Facilitation Council (MSEFC) to a five-judge Constitution bench.

The questions arise from conflicting rulings in India Glycols Ltd. (strict bar on writ petitions), Jharkhand Urja Vikas Nigam (exceptions allowed) and Gujarat State Civil Supplies Corporation Ltd. v. Mahakali Foods (members of MSEFC can act as arbitrators).

Key issues include whether writ petitions can bypass statutory remedies under Section 18 of the MSME Act, when exceptions apply, and whether MSEFC conciliators can act as arbitrators.

The case arise from Tamil Nadu Cements Corporation challenging the mandatory 75% pre-deposit for appeals under the MSME Act, raising concerns about access to justice.