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IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.ANAND VENKATESH
Bharat Sanchar Nigam Limited – Appellant
Versus
Micro and Small Enterprises Facilitation Council, Jaipur – Respondent
| Table of Content |
|---|
| 1. background of the case and arbitration details. (Para 1 , 2 , 3) |
| 2. observations on jurisdictional issues. (Para 4 , 5 , 12 , 13) |
| 3. clarification of msmed act's precedence. (Para 6 , 22) |
| 4. arguments on jurisdiction and maintainability. (Para 7 , 9 , 10) |
| 5. procedural violations established. (Para 30 , 31 , 32 , 34) |
| 6. conclusion: award set aside. (Para 36) |
ORDER :
2. The 2nd respondent was the claimant before the 1st respondent Council.The petitioner floated a tender for supply of PLB pipes and accessories. The 2nd respondent participated in the said tender and was the L1 bidder. Advance purchase order was placed on the 2nd respondent and the 2nd respondent was expected to complete the supplies within a time frame. The time was extended twice, due to various reasons and the supplies was ultimately completed after 144 days against 57 days allotted by the petitioner. The petitioner chose to impose liquidated damages contemplated under Clause 16.2(a) of Section 5 Part A of the tender, for the delayed supplies, instead of resorting to forfeiture of performance security or termination of the contract for the default committed by the 2nd respondent.
4. When this petition cam
The exclusive jurisdiction of the court as per the arbitration agreement revives post-award, and failure to follow statutory procedures under the MSMED Act warrants the award's annulment.
The jurisdiction to challenge an award under Section 34 of the Arbitration Act is governed by the exclusive jurisdiction clause in the parties' agreement, not by the MSMED Act.
The arbitration agreement's designation of venue and exclusive jurisdiction prevails over statutory arbitration under the MSMED Act, and the statutory arbitration does not override the parties' agree....
The Arbitration and Conciliation Act, 1996 is overridden by the MSMED Act, 2006, establishing the jurisdiction of the Facilitation Council for disputes, thereby necessitating adherence to its terms o....
Section 34 of the Arbitration Act arises as is evident from sub Section (6) of Section 16 of the Arbitration Act, which inter alia provides that the parties aggrieved by such an arbitral award may ma....
Important Point : The court established that statutory remedies must be exhausted before invoking writ jurisdiction against awards under the MSMED Act.
The court upheld that statutory remedies under the MSMED Act take precedence over private arbitration agreements, affirming the Facilitation Council’s jurisdiction in disputes involving MSMEs.
The Micro, Small and Medium Enterprises Development Act has precedence over the Arbitration and Conciliation Act, allowing parties to reference disputes to the MSEFC despite existing arbitration agre....
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