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PRATHIBA M. SINGH
Uniseven Engineering And Infrastructure Pvt. Ltd. – Appellant
Versus
Micro And Small Enterprises Facilitation (Msef) Council District (South) – Respondent
JUDGMENT
Prathiba M. Singh, J. This hearing has been done through hybrid mode.
2. This petition raises important issues arising out of the Micro Small and Medium Enterprises Development Act, 2006 (hereinafter `MSMED Act, 2006') and has been from heard time to time by this Court.
3. The question raised in the present petition is-
Under the MSMED Act, 2006 whether an independent claim can be entertained by the MSEFC at the instance of the BUYER?
4. The issue is to be adjudicated in the background facts wherein, the Respondent no.2 who is the buyer sought a reference under Section 18 of the MSMED Act of its claims against the Supplier, as an independent claim. No claim was filed by the Supplier against the Buyer and thus the Buyer's claim was not filed as a counter-claim.
Brief Facts
5. The Petitioner - Uniseven Engineering and Infrastructure Pvt. Ltd. seeks quashing/setting aside of the impugned order dated 14th September, 2021 passed by Respondent No.1 - Micro and Small Enterprises Facilitation Council District (South), GNCTD (hereinafter, `MSEFC') under the MSMED Act, 2006 advising the Petitioner to pay a sum of Rs.9,59,66,352/- to Respondent No. 2 - Harji Engineering Works Pvt. L
The MSMED Act, 2006 applies only to delayed payments to Micro and Small Enterprises, and it does not contemplate an independent claim by the Buyer against the Supplier.
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 Limitation Act, 1963 is not applicable to conciliation proceedings under the MSMED Act; however, it applies to arbitration proceedings, preventing stale claims from being raised under the Act.
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.
The registration under the MSMED Act, 2006 applies prospectively and not retrospectively, and the benefits of the Act do not apply if the registration is obtained subsequently to the agreement and th....
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.
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