The central legal point established in the judgment is the requirement for expeditious disposal of references made to the MSME Facilitation Council by micro, small, and medium enterprises as provided for in the Micro, Small and Medium Enterprises Development Act, 2006.

JUDGMENT

Alok Sharma, J —The petitioner's case in the ten petitions is that it is a small scale enterprise within the meaning of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter 'the Act of 2006') . It filed several references, in respect of the recovery of interest due from the Ajmer Vidyut Vitaran Nigam Limited (AVVNL) under different contracts, to the MSME Facilitation Council under the Act of 2006. The due and outstanding amounts have been detailed in the following references:-

1. 193/2014

2. 91/2012

3. 272/2015

4. 185/2014

5. 194/2014

6. 182/2014

7. 195/2014

8. 92/2012

9. 183/2014

10. 184/2014

2. The said references continue to remain unaddress for over the last more than two years to the petitioners grave prejudice and entails defeating the very purpose of the references made which in terms of Section 18 (5) of the Act of 2006 are to be decided within 90 days of then filing.

3. It has been prayed in the circumstances that the MSME Facilitation Council under the Act of 2006 be directed to decide the said ten references filed by the petitioner/scompany/s within a period of two months from the date of presentation of a certified copy of this order.

4. Heard the counsel for the petitioner, and perused the writ petition. The Act of 2006 provides for facilitating the promotion, development and enhancing of the competitiveness of Micro, Small or Medium enterprises and for matters connected therewith or incidental thereto. Section 15 of the Act of 2006 states that where any Micro, Small or Medium Enterprises supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day. The proviso to Section 15 states that in no case the period agreed upon between the micro, small or medium enterprises and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance. Section 16 sets out the date from which interest would be payable to supplier in the event of failure of the buyer to pay the due money for supply made. Section 18 of the Act of 2006 provides that 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 (principal/ interest) make a reference to the MSME Facilitation Council. Sub Section 5 of the Section 18 states that every reference shall be decided within a period of ninety days from the date of its making no doubt after due service of notice on reference to the opposite party.

5. Heard. Considered.

6. Without addressing the question as to whether Section 18(5) of the Act of 2006 can be construed mandatory or as merely directory, taken in the context of the Act of 2006, the object and purpose of the Act is that MSME's cannot be suffocated/ derailed in their businesses by non-payment of amounts due for goods supplied/ service rendered within time and payment of interest is specifically provided for at rates set out in the event of delay in payment by the buyer. Resultantly the intent of the Act of 2006 for expeditious disposal of the references made to the MSME Facilitation Council by a micro, small and medium enterprise is clearly evident. In the instant case about ten references have been made as detailed hereinabove by the petitioner-Company between the years 2012-2015 for reason of non payment of interest statutorily provided for reason of delays in payment of the principal amounts due by the buyer for goods received and consumed. Yet as of today in the month of February 2018 the said references have not been decided. This situation of pending references for upto five years is wholly unreasonable cannot be countenanced as it is starkly contrary to Section 18(5) of the Act of 2006.

7. Resultantly these petitions are allowed. The MSME Facilitation Council is directed to dispose of the petitioner's re