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MAHESH CHANDRA TRIPATHI, MANJIVE SHUKLA
Bata India Limited – Appellant
Versus
U. P. State Micro And Small Enterprise Facilitation Council – Respondent
JUDGMENT :
Manjive Shukla, J.
1. Heard Mr. Neeraj Grover and Mr. Chandra Bhan Gupta, learned counsel for the petitioners, Mr. Anil Kumar Mehrotra assisted by Mr. Srijan Mehrotra, learned counsel for Respondent No. 2.
2. Petitioners by filing this writ petition have challenged the order dated 11.6.2019 passed by U.P. State Micro and Small Enterprises Facilitation Council (hereinafter referred to as the ‘Council’), whereby the decision has been taken that in view of Section 18(3) of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as the ‘Act of 2006’), the Council itself will arbitrate the dispute in between the petitioners and Respondent No.2. Petitioners have also challenged the order dated 24.7.2019 passed by the Council whereby the petitioners’ representation pursuant to order dated 2.7.2019 passed by Delhi High Court in Arbitration Petition No.402/2019, for referring the arbitration between petitioners and Respondent No.2 to any institution or centre providing alternate dispute resolution services, has been rejected.
Brief facts of the Case
3. Brief facts of the case are that Petitioner No.1 is a company incorporated under Indian Companies Act,
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....
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....
The Micro, Small and Medium Enterprises Development Act, 2006 has overriding effect over the Arbitration and Conciliation Act, 1996 when the jurisdiction of the Council has been invoked, and the Coun....
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....
The MSMED Act, 2006 provides a statutory framework that allows the Facilitation Council to act as an arbitrator after conciliation, overriding the restrictions of the Arbitration Act, 1996.
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.
An arbitration agreement supersedes jurisdiction under the Micro and Small Enterprises Facilitation Council provisions when conflicts are solely related to arbitration agreements.
Point of Law : Court are of the unhesitant view that learned Single Judge fell in error in not only entertaining the writ petition but also in allowing the same by setting aside the award dated 28.10....
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