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2009 Supreme(Ker) 985

K.BALAKRISHNAN NAIR, P.BHAVADASAN
Managing Director, Kerala State Road Transport Corporation – Appellant
Versus
Union of India – Respondent


Advocates Appeared:For the Petitioner:V.V. Nandagopal Nambiar, SC, K.S.R.T.C. For the Respondents:R1, T.P.M. Ibrahim Khan, Asst. Solicitor General, R2, Kurian George Kannanthanam, Senior Advocate, Tony George Kannanthanam, Thomas George, Advocates.

Judgment :-

Balakrishnan Nair, J,

1.These writ petitions are filed by the Kearla State Road Transport Corporation, which is a statutory Corporation, formed under the Road Transport Corporations Act. These writ petitions are filed by it, mainly challenging Section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 (Act No.27/2006), (herein after referred to as "the Act").

2. This writ petition is treated as the main case for the purpose of referring to the parties and exhibits. The Kerala Road Transport Corporation (for short "KSRTC") issued Ext.P1 purchase order dated 5.2.1994 to the second respondent for the supply of tread rubber for re- treading treys in its three major workshops. Ext.P2 dated 10.2.94 is one of the agreements executed by the KSRTC with the second respondent for supply of tread rubber. According to the KSRTC, since the goods supplied did not conform to the specifications, it suffered loss. 90% of the amount payable under the purchase agreement has already been released to the second respondent. Only 10% of the amount was retained, when it was found that the materials supplied were substandard.

While so, the second respondent filed O.A.8 of 2006 be








































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