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N. ANAND VENKATESH
Raster Images Pvt. Ltd. , Represented by its Director – Appellant
Versus
Micro Small Enterprises Facilitation Council, Coimbatore Region, Rep. by its Chairperson – Respondent
ORDER :
(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus, calling for the records of the 1st respondent culminating in the impugned dismissal order MSEFC/CBER/82/2020- online application No.TN020E0045478/S/00002 dated 07.09.2021 and quash the same and consequently direct the 1st respondent to refer the parties to arbitration in terms of section 18 of the Mirco, Small and medium enterprises Development Act, 2006 (MSMED Act), 2006.)
1. This writ petition has been filed challenging the impugned order passed by the 1st respondent dated 07.09.2021 and for a consequential direction to the 1st respondent to comply with the mandatory requirements under Section 18 of the Micro, Small & Medium Enterprises Development Act, 2006 (hereinafter referred to as “MSMED Act”).
2. The case of the petitioner is that they are Micro Manufacturing enterprises registered with the MSME and they are in the business of software and hardware service. They entered into an agreement with All India Institute of Medical Sciences (AIIMS), New Delhi for hardware and software service through Agreement dated 25.05.2015. Pursuant to this agreeme
Proper procedural compliance with the provisions of the MSMED Act, particularly Sections 18(2) and 18(3), is essential for the validity of orders and awards.
Writ petition not maintainable against MSMED Council orders; must challenge via Section 34 A&C Act with 75% pre-deposit.
The main legal point established is that arbitration proceedings under the MSMED Act must adhere to the procedural requirements of the Act and the Arbitration and Conciliation Act, 1996.
The conciliation proceedings contemplated under Section 18(2) of MSMED Act is mandatory in nature, and failure to comply with the mandatory procedure vitiates the impugned order.
Wrong order can never be a good precedent.
The mandatory pre-deposit requirement under Section 19 of the MSMED Act, 2006 for challenging an award and the overriding effect of the MSMED Act, 2006 over the Arbitration Act, 1996 in specific disp....
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 central legal point established in the judgment is the importance of following the prescribed procedures and principles of natural justice in arbitration proceedings under the MSME Act and the Ar....
The mandatory nature of the pre-deposit requirement under Section 19 of the MSMED Act and the discretion of the court to permit the buyer to remit the amount in installments.
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