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MSME Act does not bar arbitration under the arbitration and conciliation Act as per agreement –
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The High Court observed that Section 18 of the MSME Act does not create any substantive rights or liabilities but merely provides an alternative modality for parties to resolve disputes, other than through court proceedings. It held that if a disputing party chooses to opt for arbitration independently under the Arbitration Act, relying on an arbitration clause in the agreement between the parties, nothing in the MSME Act prevents the claimant from doing so.
