Bombay High Court Dismisses Section 9 Petition, Holds MSMED Act Overrides Contractual Arbitration Clause

Case Snapshot

Case Name: Larsen & Toubro Limited v. JMD Engineering

Citation / Neutral Citation: 2026:BHC-OS:20366

High Court: High Court of Judicature at Bombay

Bench: Hon'ble Mr. Justice Amit Borkar

Date of Judgment: 17th September, 2026

Area of Law: Arbitration Law, MSMED Act, 2006, Section 9, Territorial Jurisdiction

Judgment Headline

Section 9 petition dismissed; MSMED Act overrides contractual arbitration clause, jurisdiction lies with Facilitation Council.

The Judgment in One Line

Bombay High Court dismisses Section 9 petition for want of territorial jurisdiction, holding that the MSMED Act's statutory mechanism overrides the contractual arbitration clause providing Mumbai as venue.

Why This Judgment Matters

This judgment clarifies the interplay between the Micro, Small and Medium Enterprises Development Act, 2006, and the Arbitration and Conciliation Act, 1996. It establishes that once a registered MSME invokes Section 18 of the MSMED Act before the Facilitation Council, the statutory mechanism takes precedence over any contractual arbitration claus

... Upgrade to a Premium Plan to view the full judgment.