Authority: Supreme Court of India, Civil Appellate Jurisdiction
Order Date: 13 August 2026
Case Overview
- Parties: M/S Indo Engineering Works (appellant) vs Rashtriya Ispat Nigam Limited (RINL) & Ors (respondents).
- The appellant initially sought arbitration before the Andhra Pradesh Micro and Small Enterprises Facilitation Council under the Micro, Small and Medium Enterprises Development Act, 2006.
- Respondent filed a writ petition in the High Court, which was allowed; the High Court Single Judge held the contract to be a works contract and noted that the appellant had not filed a memorandum under Section 8 of the Act, citing Silpi Industries v. Kerala State Road Transport Corporation.
- A Division Bench of the High Court kept the matter in abeyance and referred the question of filing a Section 8 memorandum to a larger bench.
- The Supreme Court, noting a pending reference before it, suggested that the parties could proceed with regular arbitration; on consent, a notice was issued on 17 July 2026.
- Respondent contended that the arbitration clause required institutional arbitration and that the appellant should not enjoy benefits of the 2006 Act; appellant opposed.
- The Court observed that because the parties consented to ordinary arbitration, the appellant cannot claim any benefits under the MSME Act, 2006.
Final Outcome
- The Court appointed Hon’ble Mr. Justice R. Raghunandan Rao, former Judge of the Andhra Pradesh High Court, as the sole arbitrator to adjudicate the dispute.
- The appointed arbitrator is authorized to issue notices, determine his fee in consultation with the parties, and conduct the arbitration independently.
- The Court Registry is directed to inform the arbitrator.
- The appeal is disposed of, and any pending applications, if any, are also disposed of.
- No opinion on the merits of the case was expressed.
Topics: Arbitration, MSME Act, Court Order