Point of law: jurisdiction of this Court under Article 226 of Constitution of India, after commencement of arbitration proceedings, is limited and more particularly against an award passed under the Act, as such the Court cannot exercise power under Article 226 of Constitution of India to issue any order in this writ petition.

ORDER :

M. Satyanarayana Murthy, J.

1. This writ petition is filed under Article 226 of the Constitution of India, to issue Writ of Certiorari, calling for the records relating to and connected with the award dated 17-09-2019 in Case No. 21C/IFC/2015/11891 on the file of the Andhra Pradesh Micro and Small Enterprises Facilitation Council, Vijayawada, and set aside the same by declaring it as illegal, irregular, Extraneous Considerations, in violation of Principles of Natural Justice, in violation of the Provisions of the Mircro, Small and Medium Enterprises Development Act, 2006 (Act 27 of 2006) (for short 'MSMED Act'), and in violation of Article 14 of the Constitution of India, and contrary to Section 80 of the Arbitration and Conciliation Act, 1996.

2. The petitioner herein is a Company incorporated under the provisions of the Companies Act, 1956, having its registered office, at Hyderabad. M/s. Utkal Alumina International Limited is a company incorporated under the Companies Act, in the State of Odisha, is a Manufacturer of Alumina Chemical, Bauxite Chemical, Corundam Chemical, Fassertonerde Chemical and Minerals and Ores in Raniguda Farm Rayagada Odisha. Utkal Alumina International Limited awarded certain works to the petitioner, at Alumina Refinery and Power plant area at Utkal Alumina Project Work site at Doraguda, Rayagada, Orissa. It is submitted that the 2nd Respondent is a company incorporated under the Companies Act on 08-10-2009, originally in the name and style of Konark Foundations Private Limited, and later the name was changed as Jupiter Contech Private Limited on 22-10-2011. The 2nd Respondent also registered with the District Industries Center Visakhapatnam on 31-12-2011 under the Provisions of the MSMED Act and that later the amendment was carried out with the District Industries Center on 09-01-2014. The 2nd Respondent got registered with the District Industries Center by mentioning that the initial date of installation is w.e.f. 8-10-2009.

3. In pursuance of the work got by the petitioner, the petitioner has awarded to the 2nd Respondent some portion of the work awarded-by the Utkal Alumina Project Work, on sub-contract basis, vide Work Order No. GOCL/IDLC/001-2008-09 dated 5-03-2008 for a total value of Rs. 3,43,72,900/- and later the value of the work order was amended vide Amendment-1 dated 01-4-09 for a revised value of Rs. 4,33,38,400/- and the same was accepted by the 2nd respondent.

4. The 2nd respondent has executed the above project works and completed the project works on 22-08-2010 in all respects and thereafter, a joint reconciliation statement for the work done, store reconciliation was done on 01-07-2011 and the final payable amount has been arrived at and agreed/accepted/approved by both parties, by letter dated 07-7-2011 confirmed the amount receivable against the work order from the petitioner is Rs. 24,56,572/-. Out of the said amount, Rs. 10,00,000/- was paid to the 2nd Respondent on 18-07-2011 (after deduction of 2% TDS). Later, the petitioner made balance payment for the works as per the terms of the work order and after detailed reconciliation, full and final settlement has also been made on 12-08-2011 vide Cheque. No. 989536 dated 12-08-2011 to a tune of Rs. 14,43,507/- for which the 2nd Respondent acknowledged vide his letter dated 12-08-2011.

5. After completion of the works and on receipt of the full and final settlement, the 2nd Respondent raised some issues and addressed a letter dated 2-09-2011 to the petitioner for resolution of outstanding issues and release of outstanding claims. It is averred in the letter that the acceptance of full and final settlement has been given under duress due to mounting financial pressure caused by non-payment and he claimed further amount of Rs. 1,86,08,350/- under various heads. Later, the 2nd Respondent once again wrote a letter dated 31-10-2