B.M. Shyam Prasad, J.

This writ petition is filed impugning the award dated 26.10.2016 by the Karnataka Micro and Small Enterprises Facilitation Council, Bengaluru (for short, 'Facilitation Council'). The Facilitation Council, by the impugned award has allowed the respondent's Reference under section 18 (1) of the Micro, Small and Medium Enterprises Development Act, 2006 (for short, "MSMED Act"), holding that the petitioner is due in a total sum of Rs.60,40,525/-, including a sum of Rs.9,65,525/- as CST difference to the respondent, and the petitioner is directed to pay to the respondent, within a period of 90 days from the date of the award, (i) the "CST difference" of Rs.9,65,525/- and (ii) the Invoice Due of Rs. 50,75,000/- with interest at 3 times the bank rate of interest notified by the Reserve Bank of India from the due date as per section 16 of Act. The petitioner has impugned the Facilitation Council's award dated 26.10.2016 on the short ground that the Facilitation Council, having conducted conciliation proceedings under section 18 (2) of the Act, could not have conducted arbitration proceedings under section 18 (3) of the Act; and if the Facilitation Council could not have conducted arbitration proceedings after the conduct of the conciliation proceedings, the impugned award would be impermissible in law.

2. The lis is in the following circumstances: the petitioner, who is engaged in the business of electronics, was successful in its bid with the Maharashtra State Electricity Distribution Co Ltd for supply, installation, connection and commission of

"GSM and GPRS Modems for HT Consumers' Metres, LT Consumers' Metres and Feeder Metres. The petitioner, in turn, invited quotations from the different vendors, including the respondent. The petitioner issued the Purchase Order dated 28.3.2011 to the respondent for supply, installation connection and commission of 1800 Data Concentrator Unit, a component of the Modems. This Purchase Order dated 28.3.2011 was modified on multiple occasions. The Maharashtra State Electricity Distribution Co Ltd terminated the contract with the petitioner alleging certain lapses in the working of the Modem.

3. The petitioner blames the respondent for the lapses in the working of the Modem, and the petitioner for this reason, and others, disputes the payment claimed by the respondent. The respondent has filed a Reference under section 18(1) of The MSMED Act for recovery of the Invoice Due (Rs.50,75,000/-), CST difference (Rs.9,65,525/-) and interest for the delay period (Rs.23,13,859/-) asserting that it was a small enterprise registered with the Department of Industries and Commerce, Government of Karnataka and engaged in software development and computer related services.

4. The Facilitation Council issued Notice dated 09.10.2015 of the proceeding to the petitioner calling upon the petitioner to either make payment of the amount claimed by the respondent or to file written statement. The petitioner neither paid such amount nor filed written statement within the time contemplated under such Notice. Thereafter, the Facilitation Council held hearings on different dates. The details of such hearings, being of significance given the grounds urged in this writ petition, and as available in the impugned award, are detailed:

Date	Details of the facilitation Council proceedings
3.3.2016	The respondent and its counsel were present, but the petitioner remained absent.
6.4.2016	Both the petitioner and the respondent, were present along with the respective counsel. Detailed discussion were held, and proceedings were adjourned to 4.5.2016 for further conciliation.
4.5.2016	The petitioner and respondent, with the respective counsel, were present; it was submitted on behalf of the petitioner that a proposal for settlement was submitted to the