Back
VIVEK SINGH THAKUR
Eco Power Solution – Appellant
Versus
Punjab State Power Corporation Ltd. – Respondent
JUDGMENT :
Vivek Singh Thakur, J.
Petitioner Firm has approached this Court for quashing impugned order dated 24.4.2019 (Annexure P-15) passed by Himachal Pradesh, Micro and Small Enterprises Facilitation Council, Shimla (respondent No. 2) (for short ‘Council’), whereby by observing that for already existing arbitration clause in agreement executed between supplier (petitioner) and buyer (respondent No. 1), reference from the proceedings of the Council was decided to be dropped with advise to the parties to act as per already existing arbitration clause at the first instance, respondent No. 2 has been directed to refer the dispute, between petitioner and respondent No. 1, to Arbitrator as per provisions of Section 18(3) of the Micro, Small and Medium Enterprises Development Act, 2006 (for short ‘MSMED Act’).
2. Petitioner Firm is duly registered under provisions of MSME Act since 2009 and is engaged in manufacturing of Distribution Transformers.
3. Respondent No. 2-Punjab State Power Corporation Limited (PSPC), a Public Sector Company, is engaged in power distribution in the State of Punjab.
4. In response to tender invited by respondent No. 1 for supply of Transformers, petitioner part
Wrong order can never be a good precedent.
Writ petition not maintainable against MSMED Council orders; must challenge via Section 34 A&C Act with 75% pre-deposit.
The MSMED Act, 2006 provides a statutory framework that allows the Facilitation Council to act as an arbitrator after conciliation, overriding the restrictions of the Arbitration Act, 1996.
The absence of proper arbitration proceedings by the MSEF Council renders its decision invalid, allowing for judicial review of the matter under writ jurisdiction.
The lack of conciliation does not undermine the statutory obligation to make payment under the MSMED Act, emphasizing the importance of adherence to payment timelines by the buyer.
The absence of mandated conciliation proceedings renders an award invalid, allowing for judicial review under writ jurisdiction.
The arbitration proceedings initiated under Section 18 of the MSMED Act must comply with the provisions of the Arbitration and Conciliation Act, and failure to do so constitutes a breach of the Act.
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
