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IN THE HIGH COURT OF ANDHRA PRADESH
K. Manmadha Rao
KMV Projects Limited – Appellant
Versus
Andhra Pradesh Micro and Small Enterprises Facilitation Council – Respondent
| Table of Content |
|---|
| 1. petitioner challenges council's jurisdiction (Para 2 , 3 , 4) |
| 2. court reviews jurisdictional objections (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18) |
| 3. writ petition allowed (Para 19 , 20) |
ORDER :
This writ petition is filed under Article 226 of the Constitution of India for the following relief:
“….to issue to issue a Writ of Mandamus or any other appropriate Writ or Writs Order or Direction declaring the Respondents minutes of the meeting dated 20.09.2023 in the proceedings vide reference no 21C/IFC/2023/2741 as arbitrary and illegal being inter alia in violation of the provisions of the Medium Enterprises Development Act 2006 and the Andhra Pradesh Micro Small and Medium Enterprises Facilitation Council Rules 2007 in addition to being in contravention of the principles of natural justice and consequently terminate the proceedings before the Respondent in 21C/IFC/2023/2741 between the 2nd Respondent and the Petitioner as being without jurisdiction and pass…”
2. Brief facts of the case are that the petitioner is a company incorporated under the provisions of the Companies Act, 1956 and is engaged in the execution of several large-scale infras
The Facilitation Council lacks jurisdiction over disputes arising from works contracts under the MSME Act, and principles of natural justice must be adhered to in adjudicatory processes.
The MSEFC lacks jurisdiction to adjudicate disputes arising from works contracts, which necessitate arbitration under traditional frameworks, not the MSMED Act.
Works contracts cannot invoke the jurisdiction of MSEFC under the MSMED Act, necessitating arbitration under the Arbitration and Conciliation Act, thereby rendering MSEFC proceedings void.
The court upheld that statutory remedies under the MSMED Act take precedence over private arbitration agreements, affirming the Facilitation Council’s jurisdiction in disputes involving MSMEs.
The MSMED Act operates as a special beneficial legislation, overriding the Arbitration Act in cases involving registered MSMEs, emphasizing exclusive jurisdiction of MSEFC for dispute resolution.
The Act does not apply to works contracts with an element of supply and not mere supply and service contracts. The contractors must file the memorandum under section 8 of the Act to claim the benefit....
The applicability of the MSME Act to disputes arising from work contracts/agreements and the need for a sole arbitrator to adjudicate disputes arising from interlinked agreements related to the same ....
Section 34 of the Arbitration Act arises as is evident from sub Section (6) of Section 16 of the Arbitration Act, which inter alia provides that the parties aggrieved by such an arbitral award may ma....
The main legal point established in the judgment is that the Facilitation Council has the jurisdiction to act as an Arbitrator after the failure of conciliation proceedings under the MSME Act. The ri....
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