The benefits under the MSME Act, 2006 do not apply if the registration under the Act was obtained subsequently.

JUDGMENT

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. None appears for the Respondents despite service.

3. The present petition has been filed by the Petitioner - Indian Oil Corporation Ltd. seeking setting aside of the impugned reference order dated 21st September, 2021 issued by the Micro, Small and Medium Enterprise Facilitation Council, South Revenue District, GNCTD (MSEFC) under the Medium Enterprises Development Act, 2006 (MSME Act, 2006).

4. In the present case, the work contract between the Petitioner and Respondent No.2 - GS Buildtech Pvt Ltd is of 4th April, 2017 and work was completed on 10th February, 2020. Subsequently, the Respondent No. 2 was registered as an MSME on 9th March, 2021.

5. Due to certain disputes arising out of the said works contract between the parties, the Respondent No.2 approached the MSEFC. Thereafter, vide the impugned reference order dated 21st September, 2021 the MSEFC referred disputes between the Petitioner and Respondent No.2 - GS Buildtech Pvt Ltd for arbitration before the DIAC.

6. This Court, vide order dated 20th March, 2023, while issuing notice had stayed the arbitration proceedings before the DIAC.

7. The facts of this matter clearly reveal that the date of the works contract as also the completion of work is prior to the registration of the Respondent No.2 as an MSME. The legal issue that arises is squarely covered by the judgment of the Hon'ble Supreme Court in M/s Shilpi Industries vs. Kerala State Road Transport Corporation, CA Nos. 1570- 1578 of 2021 and the judgment of this Court in Malani Construction Company v. Delhi International Arbitration Centre & Ors, W.P.(C) 9608/2022. The relevant part of the same is as under:

"11. In both MSEFC cases, the date of registration admittedly being after the date of the last invoice having been raised, the ratio in Silpi Industries (supra) would clearly be applicable to this case. In Silpi Industries (supra) the Supreme Court has clearly held as under:

"26. Though the appellant claims the benefit of provisions under MSMED Act, on the ground that the appellant was also supplying as on the date of making the claim, as provided under Section 8 of the MSMED Act, but same is not based on any acceptable material. The appellant, in support of its case placed reliance on a judgment of the Delhi High Court in the case of GE T&D India Ltd. v. Reliable Engineering Projects and Marketing, but the said case is clearly distinguishable on facts as much as in the said case, the supplies continued even after registration of entity under Section 8 of the Act. In the present case, undisputed position is that the supplies were concluded prior to registration of supplier. The said judgment of Delhi High Court relied on by the appellant also would not render any assistance in support of the case of the appellant. In our view, to seek the benefit of provisions under MSMED Act, the seller should have registered under the provisions of the Act, as on the date of entering into the contract. In any event, for the supplies pursuant to the contract made before the registration of the unit under provisions of the MSMED Act, no benefit can be sought by such entity, as contemplated under MSMED Act. While interpreting the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993, this Court, in the judgment in the case of Shanti Conductors Pvt. Ltd. & Anr. etc. v. Assam State Electricity Board & Ors. Etc. has held that date of supply of goods/services can be taken as the relevant date, as opposed to date on which contract for supply was entered, for applicability of the aforesaid Act. Even applying the said ratio also, the appellant is not entitled to seek the benefit of the Act. There is no acceptable material to show that, supply of goods has taken place or any services were rendered, subsequent to registration of appellant as the unit under MSMED Act, 2006. By taking recourse