The main legal point established in the judgment is that the Corporation, as the buyer, was liable to pay the amount to the suppliers, and the writ petition was not maintainable as the law provides a statutory procedure under the MSME Act.

JUDGMENT

Manash Ranjan Pathak, J. - Heard Mr. K. N. Choudhury, learned senior counsel for the appellant, and Mr. S. P. Roy, learned senior counsel, representing respondent nos. 2 and 3.

2. This writ appeal has been filed by the Assam Small Industries Development Corporation Ltd (hereinafter referred to as "the corporation") against the order dated 07.08.2018 passed by the learned Single Judge in WP(C) 2249/2014, by which the writ petition was dismissed.

3. The matter before this court arises out of a proceeding and an award by the Micro and Small Enterprises Facilitation Council (hereinafter referred to as "Facilitation Council"), which is constituted under the provisions of section 21 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as "MSME Act").

4. Respondent nos.2 and 3 before this court are small scale pharmaceutical companies which manufacture medicines and pharmaceuticals. They had supplied medicines to the Department of Health, Government of Assam, through the corporation, in the year 1992- 1993. Though a part payment was made against the said supply, but the balance amount was not paid to the manufacturer, respondent nos.2 and 3 were constrained to file a civil suit, being, Money Suit No. 201/1999, before the Court of District Judge, Senior Division, Kamrup. However, during pendency of the civil suit, the court was apprised about the enactment of the MSME Act, 2006, which mandated resolution of dispute of small scale industries through a facilitation council. The plaintiffs then withdrew the suit and made a reference before the Facilitation Council as per provisions of section 18 of the MSME Act. Section 18 of the MSME Act, which governs the functioning of the Facilitation Council, reads as under:

"18. Reference to Micro and Small Enterprises Facilitation Council.-

(1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council.

(2) On receipt of a reference under sub-section (1), the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation and the provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to such a dispute as if the conciliation was initiated under Part III of that Act.

(3) Where the conciliation initiated under sub-section (2) is not successful and stands terminated without any settlement between the parties, the Council shall either itself take up the dispute for arbitration or refer it to any institution or centre providing alternate dispute resolution services for such arbitration and the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section(1) of section 7 of that Act.

(4) Notwithstanding anything contained in any other law for the time being in force, the Micro and Small Enterprises Facilitation Council or the centre providing alternate dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India.

(5) Every reference made under this section shall be decided within a period of ninety days from the date of making such a reference."

5. A bare perusal of the aforesaid provisions shows that the duty of the Facilitation Council is to bring the contesting parties to a settlement by way of conciliation proceeding, but in case conciliation proceedings fail, then either the Facilitation Council itself becomes the arbitrator in the case, or it refers the case for arbitration. In the prese