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NAVIN CHAWLA
Shobhana Gupta – Appellant
Versus
Atlas Cycles Haryana Ltd. – Respondent
JUDGMENT
Navin Chawla, J. (Oral)--This petition has been taken up today for hearing as 09.03.2023 was declared as a Court holiday.
2. This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the `Arbitration Act.) seeking appointment of an Arbitrator for adjudicating the disputes that have arisen between the parties in relation to the Purchase Orders that were placed upon the petitioner by the respondent.
3. Admittedly, there is no Arbitration Agreement in writing between the parties contained either in the Purchase Orders or otherwise.
4. The petitioner being aggrieved of the non-payment of its alleged dues by the respondent, invoked the procedure under Section 18(1) of the Micro, Small & Medium Enterprises Development Act, 2006 (hereinafter referred as to the `MSMED Act.) before the Micro, Small & Medium Enterprises Facilitation Council, District North-West, Delhi (hereinafter referred to as the `Facilitation Council.).
5. The conciliation proceedings before the Facilitation Council failed on 20.05.2022. The Facilitation Council, however, refused to act as an Arbitrator or refer the disputes to an institution for a
The existence of an arbitration agreement is essential for invoking jurisdiction under Section 11(6) of the Arbitration Act.
The requirement of an arbitration agreement and the specific mechanism provided under Section 18 of the MSMED Act for conciliation and arbitration.
The court's decision emphasized the principle that when disputes are already pending in arbitration before a designated authority, the court may not appoint an Arbitral Tribunal under Section 11(6) o....
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 MSMED Act, 2006 provides a statutory framework that allows the Facilitation Council to act as an arbitrator after conciliation, overriding the restrictions of the Arbitration Act, 1996.
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....
Micro and small enterprises may opt for arbitration even if the MSMED Act applies, but medium enterprises are not governed by its provisions.
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....
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