JUDGMENT :

ANIL KSHETARPAL, J.

1. This appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the ‘Act of 1996’), assailing the correctness of the order dated 14.12.2020, passed by District Judge, Gurugram, while dismissing the objection petition under Section 34 of the 1996 Act. The Arbitral Tribunal appointed under Section 18 (3) of the Micro Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as the ‘MSME Act’) has directed payment of Rs.2,54,866/- alongwith future interest at the rate of 20.25% to be calculated on the total outstanding amount of Rs.2,54,866/-.

2. In substance, the learned Arbitrator has passed the award on the premise that there was a delay in payment of the amount to a small scale industry i.e respondent no.1. The Arbitrator after examining the provisions of Section 16 of MSME Act ordered the payment of interest in accordance with the provisions contained therein.

3. It is appropriate to note that MSME Development Act, 2006 has been enacted to facilitate the promotion, development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected there