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2023 Supreme(Jhk) 1186

IN THE HIGH COURT OF JHARKHAND AT RANCHI
SHREE CHANDRASHEKHAR, ANUBHA RAWAT CHOUDHARY, JJ.
The State Project Director, through Umashankar Singh & Ors. - Appellants
Versus
M/s National Printers, proprietor Apex Products Private Limited, Represented through its Director Sri Krishan Kant Kedia & Ors. - Respondents
LPA No. 505 of 2019
Decided On : 11-09-2023

Advocates Appeared:
For the Appellants : Mr. Krishna Murari, Mr. Raj Vardhan.
For the Respondents: Mr. Rahul Lamba, Mr. Aditya Mohan Khandelwal, Mr. Amrit Raj Kisku, AC to GA-V.

Headnote:(A) Micro, Small and Medium Enterprises Development Act, 2006 - Sections 15, 16, 17, and 18 - Letters Patent Appeal against High Court judgment remanding claim for interest on delayed payments - Facilitation Council's dismissal of claim deemed non-maintainable where principal paid - Court held that claim for interest lies under Section 18, even if principal is settled - Judicial review permissible when there is no alternative remedy. (Paras 4, 11-44)

Facts of the case:
The writ petitioner, a registered small-scale enterprise, claimed unpaid interest amounting to Rs.2,78,33,503/- after principal dues were settled. The Facilitation Council dismissed the interest-only claim as non-maintainable, leading to the writ petition.

Findings of Court:
The High Court quashed the Facilitation Council's dismissal, remanding the matter to it for adjudication of the claim for interest alone, as the earlier dismissal was erroneous.

Issues: (A) Was the High Court correct in allowing the claim for interest alone?

(B) Is a claim for just interest maintainable even post withdrawal of an earlier writ petition?

(C) Can interest alone be claimed without principal being sought?

Ratio Decidendi: The court ruled that the MSMED Act permits claims for interest independently and that the council's jurisdiction mandates adjudication of claims as per statutory provisions.

Result: Appeal allowed; matter remitted for adjudication.

Table of Content
1. writ petition details and history. (Para 1 , 2 , 3 , 4)
2. arguments from appellants and respondent. (Para 5 , 6)
3. consideration of maintainability of the petition. (Para 7 , 8 , 9 , 10 , 11)
4. court's review on alternative remedy. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19)
5. liberty to approach alternative forum. (Para 20 , 21 , 22 , 23 , 24)
6. findings on maintainability of interest application. (Para 25 , 26 , 27 , 28 , 29 , 30)
7. legal basis for claim of interest. (Para 31 , 32 , 33 , 34 , 35 , 36)
8. final directives and conclusion. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44)

JUDGMENT :

Anubha Rawat Choudhary, J.

This Letters Patent Appeal has been filed against the judgment dated 16th May 2019 passed by the learned writ Court whereby the writ petition being W.P.(C) No. 3649 of 2016 has been disposed of and the matter has been remanded to the Jharkhand Micro, Small and Medium Enterprises Facilitation Council, Ranchi (hereinafter referred to as the “Facilitation Council”) for adjudication of the claim relating to interest on delayed payment of bills raised by the writ petitioner.

2. In W.P.(C) No. 3649 of 2016, the following prayer had been made :

    “I. For issuance of an appropriate writ or a writ in the nature of certiorari for quashing the order dated 04.03.2016 (Annexure-4) in Case No. JHMSEFC 2/2016 passed by the learned Jharkhand Micro, Small and Medium Enterprises Facilitation Council (JHMSEFC), Ranchi wherein the learned Jharkhand Micro, Small and Medium Enterprises Facilitation Council has dismissed the application made by the Petitioner to the Council under section 18 of the Micro Small and Medium Enterprises Development Act (MSMED Act) 2006, holding it as non-maintainable.

    II. For issuance of an appropriate writ or a writ in the nature of declaration that under Section 15 to 18 of the Micro Small and Medium Enterprises Development Act (MSMED Act) 2006, the petitioner is entitled to make a reference to the Council, under Section 18 (1) of the MSMED Act, to claim interest alone.

    III. For issuance of an appropriate writ or a writ in the nature of mandamus to the respondents to make payment of interest amount to the petitioner on the principal amount of Rs.3,80,05,000/- in terms of section 16 of the MSMED Act 2006.”

3. By an order dated 04th March 2016 which was impugned in the writ petition the Facilitation Council dismissed the application made by the writ petitioner under section 18 of the Micro Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as “MSMED Act, 2006”), holding it as non-maintainable by observing that a claim only on account of interest on delayed payment of bills is not maintainable.

4. Foundational facts.

    I. On 07th August 2003, the writ petitioner was registered as a Small-Scale Industrial unit (SSI Unit) for manufacture of printing of books, magazines and stationeries. The writ petitioner participated in the tender process pursuant to the notice inviting tender issued by the appellants on 06th December 2012 for printing and supply of poster and work order was issued to the writ petitioner on 08th February 2013.

    II. After completion of work, the bill was submitted by the writ petitioner but an amount of Rs.3,80,05,000/- remained unpaid. The writ petitioner made various representations to the appellants for payment of outstanding amount of Rs.3,80,05,000/- towards supplies made by the writ petitioner which was not paid and ultimately filed a Writ Petition being W.P.(C) No. 1702 of 2014 seeking a direction upon the appellants to make the payment of the outstanding dues.

    III. On 13th January 2015 the principal amount of Rs.3,80,05,000/- was paid by the appellant no. 1 to the writ petitioner, but no payment was made on account of interest on delayed payment.

    IV. Under the aforesaid circumstances, the writ petitioner filed an interlocutory application being I.A. N

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