The Facilitation Council's failure to adhere to prescribed procedures in the MSMED Act renders its award a nullity, invalidating the requirement for challenge under the Arbitration Act.

JUDGMENT :

ANUBHA RAWAT CHOUDHARY, J.

1. This writ petition has been filed for the following reliefs:-

“(i) To issue a writ in the nature of certiorari or any other appropriate writ for quashing the Decision/Award/Decree contained in Memo No. 933/Ranchi, dated 5.4.2018 in Case No. JHMSEFC-03/2011 (Annexure-10) passed in complete violation of the principles of natural justice without even serving notice of hearing upon the petitioner, even though the matter was remanded by this Hon’ble Court vide its order/judgment dated 14.9.2016 passed in W.P.(C) No. 6464/2012 (Annexure-6);

AND/OR

(ii) For issuance of any other appropriate writ, order or direction as Your Lordships may deem fit and proper for doing conscionable justice to the petitioner.”

Foundational facts.

2. The foundational facts of dispute. The respondent No. 3 filed an application before the Facilitation Council constituted under the provisions of Micro, Small and Medium Enterprises Development Act 2006 (hereinafter referred as MSMED Act of 2006). The claim was filed for recovery of the principal amount of Rs.50,231.00 and Interest amount of Rs.3,82,443.00. Notice was issued to the petitioner however, the decision/award dated 22.03.2012 was passed by the Facilitation Council directing the petitioner to pay Rs.50,231.00 towards the principal and interest @ three times at bank rate under MSMED Act, 2006. The decision/award dated 22.03.2012 was challenged before this Court in writ petition being W.P.(C) No. 6464 of 2012 and in the said writ proceedings 75% of the amount was directed to be deposited before the Registrar General, Jharkhand High Court. Consequently, the amount was deposited. The writ petition was finally heard on 14.09.2016 and the matter was remanded to the Facilitation Council to hear the matter afresh and take a decision after due opportunities to the parties and the amount deposited before this Court was directed to be returned to the petitioner.

3. The Facilitation Council passed a fresh order/award dated 20.02.2018 after recording that the petitioner did not attend six meetings and as such observed that there is no need for any interference in earlier order/award dated 22.03.2012, communicated vide Memo No. 1384/Ranchi dated 26.04.2012. The order/award termed as Award/Decree was passed on 20.02.2018 under MSMED Act of 2006 is quoted as under:-

The Award/Decree on 20.02.2018 under MSMED Act 2006

“1. The applicant M/S C.K. Industries has filed application dated 30.05.2017 enclosing therewith the copy of Hon’ble Jharkhand High Court order dated 7/14.9.2016 and requesting therein to re-consider the case. The fact of the case is that the opposite party M/S BCCL has filed Writ Petition to Hon’ble Jharkhand High Court against the Order of this facilitation Council’s order 22.03.2012. The Hon’ble Jharkhand High Court has remanded back to this facilitation Council to hear the reference afresh and take a decision after due opportunity to the parties within a frame time.

2. The case was taken up for hearing and the application of 1^st party was sent to opposite party vide letter no. 3279 dated11.09.2017.

3. The opposite party did not attend the 6 nos. of Council meetings held since 04.09.2017 as detailed at point no. 2 (attendance) which shows that opposite party has nothing to say in their defense.

4. In compliance of Hon’ble High Court order sufficient opportunity was given to Opposite Party but Opposite Party did not respo