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ANIL S. KILOR
Bhagwat Enterprises – Appellant
Versus
Micro And Small Enterprises Facilitation Council – Respondent
JUDGMENT/ORDER
1. Heard learned counsel for the petitioner and learned counsel for the respondent No.2. None for the respondent No.1, though served.
2. RULE. Rule made returnable forthwith. Heard finally by consent for the respective parties.
3. In this petition a challenge is raised to the order dtd. 11/01/2022 passed by respondent No.1 Minor and Small Enterprises Facilitation Council, allowing the claim of balance payment under Sec. 15 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as the "MSMED Act") for Rs.21,53,217.00 for the service rendered by the respondent No.2 against the petitioner, with interest on delayed payment under Sec. 16 of the MSMED Act.
4. Brief facts of the present case are as under: The respondent No.2 preferred petition under Sec. 18 read with Ss. 15, 16 and 17 of the MSMED Act before the respondent No.1, thereby claiming to be a supplier under Sec. 2(n) of the Act of 2006, for recovery of balance and interest on delayed payment against the petitioner to the tune of Rs.21,53,217.00.
5. The petitioner filed its written statement denying all the allegations in toto. Consequently, after considering the material available on
The MSMED Act, 2006 provides a statutory framework that allows the Facilitation Council to act as an arbitrator after conciliation, overriding the restrictions of the Arbitration Act, 1996.
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....
The arbitration proceedings initiated under Section 18 of the MSMED Act must comply with the provisions of the Arbitration and Conciliation Act, and failure to do so constitutes a breach of the Act.
The Micro, Small and Medium Enterprises Development Act, 2006 has overriding effect over the Arbitration and Conciliation Act, 1996 when the jurisdiction of the Council has been invoked, and the Coun....
The absence of mandated conciliation proceedings renders an award invalid, allowing for judicial review under writ jurisdiction.
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