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NARENDRA KUMAR VYAS
Jagatjit Industries Limited, Through Its Authorized Signatory Anand Shri Kaushik, S/o M. C. Sharma – Appellant
Versus
Micro and Small Enterprises Facilitation Council, Through Its Chairperson, Directorate of Industries – Respondent
| Table of Content |
|---|
| 1. dispute relating to supply agreements under the msmed act. (Para 1 , 2 , 3) |
| 2. court's analysis of statutory provisions. (Para 4 , 19 , 20 , 21) |
| 3. arguments regarding jurisdiction and maintainability. (Para 9 , 10 , 11 , 12) |
| 4. legal conclusions on maintenance of the writ petition. (Para 18 , 24) |
| 5. final disposal order and directions. (Para 27 , 28) |
ORDER :
Narendra Kumar Vyas, J.
1. The petitioner has filed this writ petition under Article 226 of the Constitution of India for issuance of writ in nature of certiorari quashing/ setting aside the award dated 11.11.2022 passed by respondent No. 1 in Application No. CG/14/S/CGH/00278 by which arrears of unpaid money towards supply which comes to Rs. 3,68,91,729/- and as per Section 16 & 17 of the Micro, Small and Medium Enterprises Development Act, 2006 (for short “the MSMED Act, 2006”) three times of the rate of interest fixed by the Nationalized Bank which comes to Rs. 2,55,99,678/- thus, total amount comes to Rs. 6,24,91,407/- has been directed to be paid to respondent No. 2 by the petitioner within 30 days, failing which the petitioner shall be liable to pay interest till its realization.
2. The brief facts of the case
The court reiterated that challenges to awards under the MSMED Act must follow prescribed statutory remedies, including mandatory pre-deposit as per Section 19, rendering writ petitions inadmissible.
The MSMED Act, 2006 provides a specific dispute resolution mechanism that overrides private arbitration agreements, making writ petitions not maintainable when an alternative remedy exists.
Judicial review under Article 226 is not maintainable against MSEFC awards without exhausting statutory remedies as per MSMED Act.
The High Court cannot entertain writ petitions challenging awards of the Micro and Small Enterprises Facilitation Council without the mandatory deposit of 75% of the awarded amount as per Section 19 ....
The High Court cannot exercise its writ jurisdiction under Article 226 or 227 of the Constitution against the awards or orders passed by the Arbitral Tribunals as it would defeat the object of minimi....
The award passed by the Facilitation Council is without jurisdiction and, therefore, a nullity.
If any registration under the MSMED Act is obtained, the same will be prospective and would apply to supply of goods and services subsequent to registration but cannot operate retrospectively. Accord....
The mandatory pre-deposit requirement under Section 19 of the MSMED Act, 2006 for challenging an award and the overriding effect of the MSMED Act, 2006 over the Arbitration Act, 1996 in specific disp....
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