Back
IN THE HIGH COURT OF DELHI AT NEW DELHI
JASMEET SINGH
Dalmia Cement (Bharat) Limited – Appellant
Versus
ESS ESS Technofabs Private Limited – Respondent
JUDGMENT :
JASMEET SINGH, J.
1. These are petitions filed under Section 11 of the Arbitration and Conciliation Act, 1996, (“the Act”) arising out of the work order/purchase order dated 11.10.2020 and 04.11.2020, respectively, seeking appointment of a Sole Arbitrator to adjudicate disputes between the parties.
FACTUAL MATRIX AS PER THE PETITIONER
2. The petitioner, namely Dalmia Cements (Bharat) Limited is a public company engaged in the business of manufacturing and selling of cement and other allied products.
3. The respondent, namely M/S Ess Ess Technofabs Private Limited is engaged in the business of Manufacturing and installation of fabricated metal products.
4. In the year 2020, the petitioner engaged the respondent for providing material and services for mechanical fabrication and erection job of two projects, namely AFR feeding system and clinker silo at its DDSPL unit based in Rohtas, Bihar (“Project 1”) and the installation of cooler at Rajgangpur unit, Odisha (“Project 2”) respectively.
5. As regards with the project 1, the letter of indent was issued on 15.09.2020 and subsequently the petitioner issued a work order/purchase order dated 11.10.2020.
6. As regards with the projec
The court upheld that statutory remedies under the MSMED Act take precedence over private arbitration agreements, affirming the Facilitation Council’s jurisdiction in disputes involving MSMEs.
The Arbitration and Conciliation Act, 1996 is overridden by the MSMED Act, 2006, establishing the jurisdiction of the Facilitation Council for disputes, thereby necessitating adherence to its terms o....
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....
The arbitration agreement's designation of venue and exclusive jurisdiction prevails over statutory arbitration under the MSMED Act, and the statutory arbitration does not override the parties' agree....
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....
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 Facilitation Council lacks jurisdiction over disputes arising from works contracts under the MSME Act, and principles of natural justice must be adhered to in adjudicatory processes.
The MSMED Act operates as a special beneficial legislation, overriding the Arbitration Act in cases involving registered MSMEs, emphasizing exclusive jurisdiction of MSEFC for dispute resolution.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
