Supreme Court to Examine Whether 90-Day Time Limit Under MSMED Act Is Mandatory or Directory

The Supreme Court has issued notice in a plea challenging a Bombay High Court order that quashed an arbitral award passed by the MSME Facilitation Council beyond the 90-day period prescribed under Section 18(5) of the MSMED Act, 2006.

The Court will examine whether this timeline is mandatory or merely directory. The Bombay High Court Division Bench had held the Council became functus officio after the deadline.

The petitioner contended that a counterclaim filed by the respondent extended the timeline. The apex court limited the issue to the interpretation of Section 18(5), with the matter returnable on September 23, 2025.

[M/S. Vast India Private Ltd V Maharashtra Public Service Commission]