IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.SUBRAMANIAN, C.KUMARAPPAN
Classik Plasto Packagings, Represented by its Managing Partner, P.Sujatha – Appellant
Versus
Chairperson, MSE Facilitation Council, Tiruchirapalli Region,/Industries Commissioner And Director of Industries & Commerce, Guindy, Chennai – Respondent
JUDGMENT :
R. SUBRAMANIAN, J.
The appellant was visited with an award passed by the Facilitation Council constituted under the Micro, Small and Medium Enterprises Development Act, 2006.
2. Section 18 of the said Act which provides for mediation as well as arbitration of disputes reads as follows:-
18. Reference to Micro and Small Enterprises Facilitation Council.-
(1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council. (2) On receipt of a reference under sub-section (1), the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation and the provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to such a dispute as if the conciliation was initiated under Part III of that Act.
(3) Where the conciliation initiated under sub-section (2) is not successful and stands terminated without
The main legal point established in the judgment is the requirement of complying with the provisions of Section 19 for challenging an award under the Act of 1996 and the limitations on entertaining a....
An award passed by the Micro and Small Enterprises Facilitation Council under the MSMED Act is an award under the Arbitration and Conciliation Act, 1996, and therefore, it cannot be challenged by way....
The main legal point established in the judgment is that the Facilitation Council has the jurisdiction to act as an Arbitrator after the failure of conciliation proceedings under the MSME Act. The ri....
The jurisdiction of the Micro Small and Medium Enterprises Facilitation Council is determined by the supplier's registered office location, overriding any contractual jurisdiction clauses.
A writ petition challenging an award under the MSME Act is not maintainable unless the petitioner deposits 75% of the awarded amount, as mandated by Section 19 of the MSME Act, 2006.
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