Telangana High Court: 'Works Contract' Classification Under MSME Act Not to Be Decided in Writ Jurisdiction

The Telangana High Court ruled that the classification of a contract as a ‘works contract’ under the MSME Act cannot be determined under Article 226 writ jurisdiction.

The Court held that such issues involve disputed facts and require examination of evidence, which falls outside the scope of writ proceedings. These matters should be addressed by the designated statutory authority or through arbitration.

The bench clarified that writ jurisdiction is confined to clear cases of legal violation and not appropriate for fact-based contractual determinations, reaffirming that complex commercial disputes are best resolved through specialized forums.