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IN THE HIGH COURT OF ORISSA AT CUTTACK
CHAKRADHARI SHARAN SINGH, CJ., MURAHARI SRI RAMAN
Tulasi Modern Rice Mill – Appellant
Versus
Orissa State Co-operative Marketing Federation Limited – Respondent
| Table of Content |
|---|
| 1. msef council decision challenged in court (Para 2 , 3 , 4) |
| 2. nature of decision under msmed act (Para 5) |
| 3. msmed act provisions for small enterprise protection (Para 9 , 10 , 12 , 13 , 14) |
| 4. msef council's decision can't be arbitral award (Para 18) |
| 5. court upholds single judge's decision (Para 19 , 20 , 21) |
JUDGMENT :
Chakradhari Sharan Singh, CJ.
This matter is taken up through Hybrid mode.
2. A decision of Micro and Small Enterprises Facilitation Council, Cuttack (in short, "MSEF Council‟) in MSEFC Case No.51 of 2019 dated 30.12.2020 purported to be an award under Section 18 (3) of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) read with the provisions of Arbitration and Conciliation Act, 1996 (in short, "Arbitration Act‟) was put to challenge by the Orissa State Cooperative Marketing Federation Limited (respondent No.1 herein), by filing a writ petition, giving rise to W.P.(C) No.39436 of 2021.
3. A learned Single Judge of this Court has set aside the said decision of the MSEF Council as illegal and not in accordance with law on the ground that there had been no arbitration proceeding conducted by the MSEF Council as stipulated under su
The absence of proper arbitration proceedings by the MSEF Council renders its decision invalid, allowing for judicial review of the matter under writ jurisdiction.
Orders by MSEFC failing to follow arbitration procedures under the MSMED Act are not valid awards, allowing for writ petitions under Article 226 due to natural justice violations.
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....
Writ petition against arbitral award is maintainable; petitioner must follow remedies under Arbitration Act.
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.
The arbitration proceedings initiated under Section 18 of the MSMED Act must comply with the provisions of the Arbitration and Conciliation Act, and failure to do so constitutes a breach of the Act.
The court ruled that a party to a dispute cannot waive the mandatory conciliation requirement under Section 18(2) of the MSMED Act, validating subsequent arbitration proceedings.
Writ petition not maintainable against MSMED Council orders; must challenge via Section 34 A&C Act with 75% pre-deposit.
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