ORDER :

1. This writ petition is filed under Article 226 of the Constitution of India for the following relief:

“…..to issue a writ order or direction particularly in the nature of a Writ of Prohibition restraining the 1st Respondent in continuing the proceedings in Reference No 21C/IFC/2022/1669 Application No UDYAMAP100007461/S/00002 and to declare the proceeding in the Reference No 21C/IFC/2022/1669 Application No IJDYAMAP10 0007461/S/00002 as without jurisdiction and beyond the jurisdiction and scope of the 1^st Respondent under the Micro Small and Medium Enterprises Act 2006 and consequently direct the 1st Respondent to forthwith drop all further proceedings pursuant to Reference No 2 IC/IFC/2022/1669 Application No UDYAMAP100007461/S/00002 and pass……”

2. Brief facts of the case are that the 1^st Respondent issued an "Intimation" dated 25-05-2021 to the petitioner demanding payment of an amount of Rs. 58,50,23,610/-. Challenging the said Intimation, the petitioner filed W.P.No.18584 of 2021 before this Court and this Court permitted the petitioner to treat the said intimation as a show cause notice and submit its objections. But subsequent to filing of the said writ petition, the claim of the respondents No.2 and 3 was settled and the same was brought to the notice of the 1^st respondent vide Memo dated 30.08.2022. As the claims between the petitioner and the respondents No.2 and 3 were settled, the petitioner asked the 1^st respondent to drop all further proceedings before it. However, to the shock and surprise of the petitioner, the 3^rd respondent filed reply Memo dated 21.11.2022 stating that the no-due certificate ‘was forced out of’ it for the purpose of paying bills, which is illegal and unlawful. It is stated that the 1^st respondent should have dropped all further proceedings before it in the light of the Memo filed by the petitioner and the communication addressed to it by respondent No. 2 and 3. Instead, the respondents No.2 and 3 are trying to make the 1^st respondent adjudicate on the application that was withdrawn by them. The 1^st respondent is entertaining such requests and forcing the petitioner to participate in the proceedings before it. The conduct of the respondents in this regard is illegal and arbitrary. It is stated that Respondents 2 and 3 initiated Arbitration proceedings against the Petitioner. The Sole Arbitrator appointed by Respondents 2 and 3 was proceeding at lightning speed and was about to grant the entire claim and that the Petitioner timely took steps against the said proceedings as the Arbitrator had no jurisdiction under the said Construction Agreement. The construction Agreement provided for Arbitration for disputes below Rs.50,000/-. The Agreement also specifically provides that all claims above Rs.50,000/- have to be adjudicated by a competent Civil Court by way of a Civil Suit. Considering the same, this Hon'ble Court in CMA 220 of 2021, filed by the Petitioner, granted stay of all further proceedings before the said Arbitrator. The said CMA is still pending before this Hon'ble Court. The Respondents 2 and 3, later withdrew their claim before the said Arbitrator after their dues were settled in October/November 2021. It is stated that in addition to all the amounts received from the petitioner, the respondents No.2 and 3 have initiated the complaint before the 1^st respondent seeking a sum of Rs.55,30,81,823/- plus interest to the tune of Rs.35,05,84,167/- (Total : Rs.90,36,65,990/-), which is illegal and arbitrary. Hence, the present writ petition.

3. This Court vide order dated 04.11.2023, while issuing Notice before admission, has granted direction as under:

“……..Since the jurisdiction of the respondent No.1 is raised in this writ petition, the matter is Admitted and stay of all further proceedings before the respondent No.1 is granted, pending further orders.”

4. The counter affidavit has been filed by the respondents No.2 and 3. While denying the allegations made in the petition, inter alia