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VIBHU BAKHRU
Indian Highways Management Company Limited – Appellant
Versus
Sowil Limited – Respondent
JUDGMENT
Vibhu Bakhru, J. - The petitioner (hereafter IHMCL) has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter the A&C Act) impugning an arbitral award dated 11.10.2021 (hereafter the impugned award) rendered by an Arbitral Tribunal constituted by Justice (Retired) Badar Durrez Ahmed as the Sole Arbitrator (hereafter the Arbitral Tribunal).
2. The Arbitral Tribunal has rendered the impugned award in the context of disputes that have arisen between the parties in relation to a contract dated 28.10.2014 for "Conducting Traffic Surveys on National Highways in Zone-5 (in the States of Odisha, West Bengal and North Eastern States) using Portable Automatic Traffic Counter & Classified (ATCC) Systems" (hereafter the Contract).
Factual Context
3. The respondent (hereafter SOWiL) is a small enterprise under the Micro, Small, Medium Enterprise Development Act, 2006 (hereafter the MSMED Act) and is, inter alia, engaged in the business of providing consultancy services to various organizations for development works, railway works, bridges, structures and tunnelling.
4. IHMCL is a public limited company incorporated under the Companies Act, 1956
The MSMED Act prevails over A&C Act provisions regarding interest, granting small enterprises specific rights on delayed payments independent of dispute resolution processes.
EM-II filing discretionary for micro/small enterprises beyond 180 days; MSMED reference limitation starts from buyer's post-investigation denial, not supply date; narrow Section 34 scope upholds awar....
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 lack of conciliation does not undermine the statutory obligation to make payment under the MSMED Act, emphasizing the importance of adherence to payment timelines by the buyer.
The Court upheld the impugned Award and emphasized the finality of arbitral awards, reinforcing the limited grounds for challenging an award under the Arbitration and Conciliation Act, 1996.
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