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M. S. SONAK, JITENDRA JAIN
Gammon Engineers and Contractors Pvt. Ltd. – Appellant
Versus
Rohit Sood – Respondent
JUDGMENT :
JITENDRA S. JAIN, J.
1. The following question is referred for the consideration of the Larger Bench on account of contrary views expressed by the two learned Single Judges of this Court in case of Gammon Engineers and Contractors Pvt. Ltd. Vs. Sahay Industries, 2023 SCC Online Bom 750 wherein it was held that Application under Section 34 of the Arbitration and Conciliation Act, 1996 [‘Arbitration Act’] in case of the award passed under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 [‘MSMED Act’] is to be filed as per original agreement between the parties at the place where exclusive jurisdiction is agreed upon and not at the place where the award under Section 18 was passed. The contrary view was taken in the case of Microvision Technologies Pvt. Ltd. Vs. Union of India, 2023 SCC Online Bom. 1848 wherein in paragraph No. 38, the learned Single Judge observed that the challenge to the award under Section 34 of the Arbitration Act is to be filed before the Court where the supplier is located:
The jurisdiction to challenge an award under Section 34 of the Arbitration Act is governed by the exclusive jurisdiction clause in the parties' agreement, not by the MSMED Act.
The exclusive jurisdiction of the court as per the arbitration agreement revives post-award, and failure to follow statutory procedures under the MSMED Act warrants the award's annulment.
The arbitration agreement's designation of venue and exclusive jurisdiction prevails over statutory arbitration under the MSMED Act, and the statutory arbitration does not override the parties' agree....
The Arbitration and Conciliation Act, 1996 is overridden by the MSMED Act, 2006, establishing the jurisdiction of the Facilitation Council for disputes, thereby necessitating adherence to its terms o....
The Micro, Small and Medium Enterprises Development Act has precedence over the Arbitration and Conciliation Act, allowing parties to reference disputes to the MSEFC despite existing arbitration agre....
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.
Important Point : The court established that statutory remedies must be exhausted before invoking writ jurisdiction against awards under the MSMED Act.
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....
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