Non-compliance with the pre-deposit requirement within the prescribed time renders the petition barred by limitation and improperly filed, leading to its dismissal.

1. This Original Petition is filed under Section 34 of the Arbitration & Conciliation Act against the award dated 31.10.2010 passed in favour of the First Respondent M/s. Nortan Intec Rubber (P) Ltd. by Second Respondent MSE Facilitation Council and Industries Commissioner and Director of Industries and Commerce (hereinafter shortly referred to as “MSMED”).

2. The facts, which are relevant for consideration herein are as follows:

The Petitioner-Company M/s. Goodyear India Ltd and the First Respondent M/s. Nortan Intec Rubber (P) Ltd. entered into Agreements on 14.05.1997 and 01.04.1999 thereby the Petitioner-Company agreed to supply to the First Respondent required quantity of butyl rubber, carbon black, valve components, chemicals for the manufacture and packing of butyl tubes by using the Plant and Machinery belonging to the First Respondent. The First Respondent was entitled to get conversion charges and Excise duty payable thereon against invoices. The Petitioner in terms of the Agreement supplied the materials, but the First Respondent, according to the Petitioner defaulted in supply of finished goods, as such, dispute arose between the parties, which was followed by Memorandum of Understanding dated 04.11.2000. There was renewal of supply of raw materials. Again, according to the Petitioner, there was default in supply of finished goods and the same was again followed by further dispute and misunderstanding and exchange of notices between the two. In the meanwhile Micro, Small and Medium Enterprises Development Act, 2006 (Act 27 of 2006 came into force) (herein after shortly referred to as “MSMED Act”. The First Respondent by invoking the relevant provisions of law under Act 27 of 2006 filed a claim for Rs. 80,31,956/- against the Petitioner herein before the Second Respondent-Council.

3. The Petitioner-Company filed a detailed Counter thereby seriously questioning the applicability of the provisions of Act 27 of 2006 for the claim relating to the period between 1997 to 1999 and by denying the liability and the quantum of liability and prayed for rejection of the claim made by the First Respondent. The parties are permitted to file their Written Objections and also to advance hearings and oral arguments on the hearing dates and last of such hearing date was on 23.11.2009. The Petitioner-Company herein and the First Respondent made the claim before the Second Respondent herein and seriously opposed the maintainability of the claim before the Second Respondent on the ground of non-applicability of provisions of Act 27 of 2006. The impugned award came to be passed on 31.12.2009 in and under which, the plea of the Petitioner herein as the Respondent therein was rejected and the Respondent-Company was directed to pay the principal amount of Rs. 80,11,495/- with interest at the rate prescribed in “the interest on delayed payments to small scale and ancillary undertaking Act” from the appointed due dates till the date of coming into force of MSMED Act compounded with monthly rests on the amounts so arrived, at three times of the bank rate and notified by the Reserve Bank of India from the date of coming into effect of the MSMED Act till date of settlement and order of the Council. The award was received by the Petitioner-Company on 15.01.2010. Aggrieved against the award, the present Original Petition came to be filed by the Petitioner on 29.03.2010.

4. The Petitioner-Company has in this Original Petition questioned the claim made by the First Respondent before the 2nd Respondent not only on the following legal grounds viz., (i) limitation (ii) jurisdiction of the council to entertain the claim (iii) non-applicability of provisions of Act 27 of 2006, and (iv) the manner in which the award was passed as if without going into the merits of the claim and without coram but also on merits by denying their liability and quantum of liability not only in respect of principle but also interest and also the rate of interest.

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