IN THE HIGH COURT OF ALLAHABAD
ATTAU RAHMAN MASOODI, OM PRAKASH SHUKLA, JJ.
M/S Docket Care Systems Lko. Thru. Partner Shri Pankaj Kumar Agarwal - Applicant
Versus
Union of India, Thru. Secy. Ministry of Micro, Small and Medium Enterprises, New Delhi and Others - Opposite Parties
Civil Misc. Review Application No. 135 of 2023
Decided On : 14-12-2023
Review Application - MSME Act and Arbitration & Conciliation Act - Section 18(3) of MSME Act, Section 34 of Arbitration & Conciliation Act - The court discussed the limited scope of review power, the need for an error apparent on the face of the record, and the applicability of the provisions of the Arbitration & Conciliation Act to the arbitration proceedings under the MSME Act. The court found that the review applicant failed to establish any grounds for review and dismissed the review application.
Fact of the Case:
The review applicant sought a review of the judgment/order dated 10th of October, 2023, on the ground of an error apparent on the face of the record. The review applicant contended that the MSME Council's award and the manner in which it was passed during the pendency of the Writ-C-No. 8012 of 2023 were infirm. The respondent No.4 raised issues of maintainability of the review application and cited relevant case law.
Finding of the Court:
The court found that the review applicant failed to establish any grounds for review. The court discussed the limited scope of review power, the need for an error apparent on the face of the record, and the applicability of the provisions of the Arbitration & Conciliation Act to the arbitration proceedings under the MSME Act. The court concluded that the review application was not maintainable and dismissed it.
Issues: The issues included the grounds for seeking a review, the maintainability of the review application, and the applicability of the provisions of the Arbitration & Conciliation Act to the arbitration proceedings under the MSME Act.
Ratio Decidendi: The court emphasized the limited scope of review power, the need for an error apparent on the face of the record, and the applicability of the provisions of the Arbitration & Conciliation Act to the arbitration proceedings under the MSME Act. The court held that the review applicant failed to establish any grounds for review and dismissed the review application.
Final Decision: The court dismissed the review application, stating that the review applicant may avail the remedy as provided under law, as already granted by the court in the impugned order dated 10.10.2023, if so desires.
JUDGMENT :
Om Prakash Shukla, J.
1. Heard Mr. Madhusudan Srivastava, Mr. Sudeep Kumar, learned Counsel representing the review applicant and Mr. Rajesh Tewari, Mr. Vaibhav Tewari, Mr. Ritwick Rai, learned Counsel representing the respondents.
2. The review applicant has filed the present application under Chapter-V, Rule 12 of the Allahabad High Court Rules read along with Order XLVII Rule 1 of the Civil Procedure Code, seeking review of the judgment/order dated 10th of October, 2023 passed by this Court in Writ-C No. 8012/2023 (M/s Docket Care Systems V/s Union of India Others), wherein this Court had passed the following order :
2. Shri Rajesh Tiwari, leanred Counsel for respondents no.2 and 3, on the basis of instructions, has stated that an award has already been rendered by the Facilitation Council on 07.10.2023, a photocopy whereof placed before us is taken on record. A certified copy of the award applied for, if any, by the petitioner may be supplied to him not later than a period of ten days from the date of application.
3. Shri Vaibhav Tiwari, learned Counsel appearing for respondent no.4 has also filed a short counter affidavit placing on record the details of arbitral proceedings transpired before the Facilitation Council and conducted under Section 18(3) of Micro, Small and Medium Enterprises Development Act, 2006 (in short, 'MSME Act').
4. Learned Counsel for the opposite parties have submitted that as against the award rendered by the Arbitral Tribunal on 07.10.2023, the petitioner has a remedy under Section 34 of the Arbitration and Conciliation Act, 1996.
5. At this stage, learned Counsel for the petitioner prays that he may be permitted to withdraw the instant petition with liberty to avail the alternative remedy, available to him, under law.
6. In view of the above, the instant petition is dismissed as withdrawn with the liberty as prayed.
7. It is made clear that the all the legal issues shall remain open to the petitioner before the competent forum. The exemption application, if any, moved under Section 19 of MSME Act shall also be considered by the forum concerned on its own merit.”
3. This Court may not be unnecessarily detained with enumerating the detailed facts of the present case, suffice to say that this Court finds that the review of the aforesaid judgment/order dated 10th of October, 2023 has been sought by the review applicant on the ground that there is an error apparent on the face of record as this Court without appreciating the judgement passed by the Apex Court in Jharkhand Urja Vikas Nigam Limited V/s State of Rajasthan & Ors. (2021) 4 SCC 476 has relegated the review applicant to alternative remedy as available under the provisions of Arbitration & Conciliation Act, 1996. Further ground has been urged relating to the manner in which the MSME Council has passed the award dated 7th of October, 2023 during the pendency of the Writ-C-No. 8012 of 2023 and the liberty/opportunity not having been provided to the review applicant to amend the said writ on the ground of availability of alternative remedy.
4. The learned Counsel for the review applicant has also submitted that this Court in the judgment/order dated 10.10.2023 under review has failed to examine the infirmities committed by the MSME Council, which had the effect of making the entire proceedings under Section 18 of the MSMED Act, 2023 as well as the award dated 07.10.2023 a nullity in the eyes of law. Further, grounds of not following the provisions of Sections 20, 23, 24 and 25 of the Arbitration & Conciliation Act, 1996 in rendering the award dated 07.10.2023 has also been urged by the learned Counsel for the review applicant. Other additional ground of the respondent No.4 being not a “supplier” in terms of the provisions contained under Section 2 (n) of the MSME Act and the claim
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AI
The court emphasized the limited scope of review power, the need for an error apparent on the face of the record, and the applicability of the provisions of the Arbitration & Conciliation Act to the ....
Writ petition against arbitral award is maintainable; petitioner must follow remedies under Arbitration Act.
Important Point : The court established that statutory remedies must be exhausted before invoking writ jurisdiction against awards under the MSMED Act.
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....
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.
Jurisdictional challenges to arbitration awards must be raised under Section 34 of the Arbitration Act, and the pre-deposit requirement under Section 19 of the MSME Act is mandatory.
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....
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.
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....
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