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HIGH COURT OF GUJARAT
SUNITA AGARWAL, PRANAV TRIVEDI
H.K. Infracon Private Limited – Appellant
Versus
Mamlatdar and Executive Magistrate Mehsana – Respondent
ORDER :
SUNITA AGARWAL, CJ.
1. Having heard the learned counsel for the appellant and perused the record, it is pertinent to note that the original writ petition out of which the instant appeal has arisen, was filed challenging the award dated 05.01.2024 passed by the Micro & Small Enterprises Facilitation Council (in short ‘MSME Council’) located in the State of Madhya Pradesh (MP) on the premise of the same being nullity and without jurisdiction. The further challenge was to the consequential notice dated 26/27.11.2024 issued by the Mamlatdar, Mehsana seeking to make recovery under the said award passed by the MSME Council, MP.
2. The learned single Judge has categorically recorded the submissions of the learned counsel appearing for the petitioner that MSME Council had originally initiated the conciliation proceedings under Section 18(2) of the Micro, Small and Medium Enterprises Development Act, 2006 (in short MSMED Act’) and whereas, no settlement proposal has been submitted by the petitioner in the conciliation proceedings, the MSME Council without conducting any Arbitration proceedings further, had passed the award without following the procedure prescribed. The office of the C
The MSME Council had jurisdiction to pass the award, and the appeal was dismissed for lack of territorial jurisdiction, affirming the distinction between conciliation and arbitration.
Writ petition against arbitral award is maintainable; petitioner must follow remedies under Arbitration Act.
The exclusive jurisdiction of the court as per the arbitration agreement revives post-award, and failure to follow statutory procedures under the MSMED Act warrants the award's annulment.
MSME Council would have no jurisdiction to entertain dispute when contract was entered into appellant was not MSME.
Important Point : The court established that statutory remedies must be exhausted before invoking writ jurisdiction against awards under the MSMED Act.
The jurisdiction of the Micro Small and Medium Enterprises Facilitation Council is determined by the supplier's registered office location, overriding any contractual jurisdiction clauses.
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....
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