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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K.MANMADHA RAO
Tirumala Tirupathi Devasthanams – Appellant
Versus
Micro and Small Enterprises Facilitation Council – Respondent
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 1st 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 1st 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 c
Important Point : The court established that statutory remedies must be exhausted before invoking writ jurisdiction against awards under the MSMED Act.
The mandatory pre-deposit requirement under Section 19 of the MSMED Act, 2006 for challenging an award and the overriding effect of the MSMED Act, 2006 over the Arbitration Act, 1996 in specific disp....
If any registration under the MSMED Act is obtained, the same will be prospective and would apply to supply of goods and services subsequent to registration but cannot operate retrospectively. Accord....
The main legal point established is that arbitration proceedings under the MSMED Act must adhere to the procedural requirements of the Act and the Arbitration and Conciliation Act, 1996.
The High Court cannot entertain writ petitions challenging awards of the Micro and Small Enterprises Facilitation Council without the mandatory deposit of 75% of the awarded amount as per Section 19 ....
The High Court cannot exercise its writ jurisdiction under Article 226 or 227 of the Constitution against the awards or orders passed by the Arbitral Tribunals as it would defeat the object of minimi....
Jurisdictional challenges to arbitration awards must be raised under Section 34 of the Arbitration Act, and the pre-deposit requirement under Section 19 of the MSME Act is mandatory.
The MSMED Act, 2006 provides a specific dispute resolution mechanism that overrides private arbitration agreements, making writ petitions not maintainable when an alternative remedy exists.
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