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SABYASACHI BHATTACHARYYA
Essar Oil And Gas Exploration And Production Limited – Appellant
Versus
Gargi Travels Private Limited – Respondent
JUDGMENT :
1. The crux of the dispute in the present case is whether, in the teeth of the pendency of a reference under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as, “the 2006 Act”) to the Micro and Small Enterprises Facilitation Council (MSEFC), this Court can pass an order under Section 11 of the Arbitration and Conciliation Act, 1996 (for short, “the 1996 Act”).
2. Learned counsel for the petitioner contends that the contemplation of arbitration under Section 18 of the 2006 Act only comes into play once the conciliation fails. In the present case, since the conciliation stage is not yet over, there is no scope to argue that arbitration has begun before the MSEFC. Hence, there is no bar to proceed with the appointment of an Arbitrator under Section 11 of the 1996 Act.
3. Learned counsel further submits that Section 24, which confers overriding effect on the 2006 Act, is not attracted to the present case in view of the arbitration having not yet commenced.
4. Learned counsel cites a Division Bench Judgment of the Madhya Pradesh High Court in M/s. Ujas Associates Vs. M/s. KJS Cement (India) Ltd., to highlight the proposition th
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 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 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 main legal point established in the judgment is that the application under Section 9 of the Act of 1996 is only maintainable after the termination of conciliation proceedings as per Section 18(3)....
Non-compliance with mandatory provisions of Section 18(2) of the Micro, Small and Medium Enterprises Development Act, 2006 vitiates the award, rendering it null and void.
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