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.

JUDGMENT :

VIPIN SANGHI, J.

The present appeal, under Section 37 of the Arbitration and Conciliation Act, is directed against the judgment dated 27.09.2022, passed by the court of Additional District Judge, Commercial, Dehradun, in Arbitration Case No. 35 of 2020, C.G. No. 69 of 2020, whereby the objections preferred by the respondent under Section 34 of the Arbitration and Conciliation Act against the Award passed by the Facilitation Councildated 25.01.2020 have been allowed, and the said Award was set aside.

2) The appellant and the respondent entered into a commercial transaction, where under the appellant - being a micro enterprise, has undertaken the supply of certain goods to the respondent. A dispute arose with regard to the amount payable to the appellant. Since the appellant is a micro enterprise, the appellant invoked the remedy available to it under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The Micro, Small and Medium Enterprises Facilitation Council initiated conciliation proceedings. The claim of the appellant was registered as Case No. 271. On 04.11.2019, the said Facilitation Council recorded its minutes. The same reads as follows:-

^^okn la0 271 & eS0 ch0,l0ikWyhisd 28 vkn'kZ dkykuh] jkeuxj :M+dh ftyk& gfj}kj mRrjk[k.M ds izfroknh eS0 mRrjkpy ,xzks QwM :yj feYl xzke& lqugjk] ek/kkSijq jksM+ :M+dh ftyk&gfj}kj okn la0 271 ds lacU/k esaA

oknh bdkbZ }kjk izfroknh bdkbZ dks vkiwfrZ fd;s x;s eky ds foyfEcr Hkqxrku ewy/ku :0 4]84]270& rFkk bl ij fnukad 30&09&18 rd vkxf.kr C;kt 10]67]051 dqy :0 15]51]321@& dk okn fnukad 15&10&18 dks izLrqr fd;k x;k ftls 15 fnukad ds Hkhrj viuk i{k j[kus gsrq izfroknh dks ifj"kn ds iathd`r i=kad 8030 fnukad 22&11&2018 }kjk izsf"kr fd;k x;kA izfroknh }kjk izR;qRrj miyC/k u djk;s tkus ij iqu% ifj"kn ds iathd`r i=kad 8543 fnukad 18&12&2018 }kjk 15 fnu ds vUrxZr izR;qRrj miyC/k djk;s tkus gsrq uksfVl fuxZr fd;k x;kA

iqu% ifj"kn ds iathd`r i=kad 9407 fnukad 29&01&2019 }kjk 15 fnu ds vUrxZr izR;qRrj miyC/k djk;s tkus gsrq uksfVl fuxZr fd;k x;kA

izfroknh }kjk vius izR;qRrj fnukad 2&2&2019 }kjk voxr djk;k x;k fd okn xyr rF;ksa ij izLrqr fd;k x;k gSA bl lEcU/k esa iwoZ esa :0 484271 ds lEcU/k esa Li"V fd;k x;k Fkk fd :0 243830 dk Hkqxrku oknh dks djuk gS uk fd izfroknh dksA bl lEcU/k esa nksuksa i{kksa esa ,d gLr fyf[kr ipkZ cuk;k x;k gS tks muds }kjk izR;qRrj ds lkFk layXu fd;k x;k gSA oknh ds i{k dk tkuus ds fy;s ifj"kn ds i=kad 9538 fnukad 05&02&19 dks izsf"kr fd;k x;kA

oknh }kjk vius izR;qRrj fnukad 22&2&19 esa voxr djk;k x;k fd izfroknh dk dFku vlR; gSA izfroknh dks dkuwuh uksfVl Hksts x;s ek= ;gh rF; Lohdk;Z gSA izfroknh }kjk dHkh Hkh uxn ysu nsu ugh fd;k x;kA oknh dh ,e0,l0,e0bZ0 bdkbZ gksus ds dkj.k okn ifj"kn ds {ks=kf/kdkj esa vkrk gSA

oknh ds bl mRrj ij izfroknh dk i{k j[kus gsrq ifj"kn ds iathd`r i=kad 9970 fnukad 27&02&19 }kjk uksfVl fuxZr fd;k izR;qRrj vfrfFk rd vkisf{kr gSA

ifj"kn dh cSBd fnukad 29&05&19 esa oknh ds izfrfuf/k Jh th0,l0 pkSgku mifLFkr ugha FksA tcfd izfroknh ds izfrfuf/k Jh Mh-,l-usxh mifLFkr jgsA ifj"kn }kjk vxyh cSBd dh frfFk esa lquokbZ dk fu.kZ; fy;k x;kA

ifj"kn dh cSBd fnukad 03&07&19 esa izfrfuf/k Jh th-,l- pkSgku rFkk izfroknh ds izfrfuf/k Mh-,l-usxh mifLFkr jgsA izfroknh }kjk voxr djk;k x;k fd muds }kjk oknh ds lkFk ,dkmUV dk feyku fd;k x;k vkSj mudh dh /kujkf'k oknh ij vo'ks"k gSA ifj"kn }kjk mHk; i{kksa dks lquus ds ckn vkxkeh cSBd ls iwoZ viuh vkfMVsM osysUl lhV ifj"kn ds dk;kZy; esa izLrqr djus ds funsZ'k fn;s x;sA

ifj"kn dh cSBd fnukad 20&08&19 esa oknh ds izfrfuf/k Jh th-,lpkSgku mifLFkr jgsa] tcfd izfroknh vuqifLFkr jgsA ifj"kn }kjk izfroknh dks funsZ'k fn;s fd muds }kjk oknh dk fd;s x;s Hkqxrku ds dksbZ lk{; gks rks mUgsa 15 fnu ds vUnj izLrqr djsaA

oknh ds ,MoksdsV izfrfuf/k }kjk pkVZMZ ,dkmUVsUV ls rS;kj dh x;h cSysal lhV fnukad 21&08&19 dks izLrqr dh x;hA oknh ds ,MoksdsV izfrfuf/k }kjk vkjfoZVªs'ku ,.M dkWflfy;s'ku ,DV dh /kkjk 70 ds vuqlkj lwpuk dh xksiuh;rk cuk;s j[kus dk vuqjks/k fd;k x;kA

ifj"kn dh cSBd fnuk