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SABYASACHI BHATTACHARYYA
V. K. Patel and Co. – Appellant
Versus
Simplex Infrastructure Limited – Respondent
JUDGMENT :
Sabyasachi Bhattacharyya, J.
1. The present application has been filed for enforcement of a money-award rendered in favour of the petitioner, which is a partnership firm, registered as an MSME unit under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as, “the MSME Act”). The compass of the present dispute is short. Whereas the award-holder/petitioner argues that the rate of interest directed to be paid in the award to the petitioner is to be calculated on the basis of the bank rate fixed by the Reserve Bank of India (RBI) as on the "appointed date", the award-debtor/respondent contends that the interest should be calculated on the basis of the fluctuating rates at different points of time as notified by the RBI from the appointed date till the date of payment.
2. Learned counsel for the petitioner argues that the MSME Act is a beneficial or welfare statute and should be given a liberal and not a strict interpretation. If capable of constructions, the one which is more in consonance with the object of the Act is to be preferred. In support of such contention, the award-holder cites Regional Provident Fund Commissioner
Writ courts may direct a verification process by state authorities for MSME payment disputes involving complex factual queries regarding supply dates and statutory interest calculations, while reserv....
Point of Law : Arbitration Award - Having specifically found that the petitioner/buyer failed to make payment of the outstanding amount to the respondent/supplier in respect of at least six of the ei....
The MSMED Act mandates that buyers must pay compound interest on delayed payments to suppliers, establishing a statutory right for suppliers to claim such interest irrespective of any agreements to t....
The central legal point established in the judgment is that the provisions of the MSME Act have an overriding effect on any agreement between the buyer and supplier, and the liability to pay compound....
The court emphasized the limited scope of interference under Section 34 of the A & C Act, 1996 and the principle that the court should not substitute its reasoning for that of the Arbitrators, especi....
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