JUDGMENT

This is a arbitration petition filed under section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter for short “the said Act”), whereby the petitioner is before the Court praying that an arbitral tribunal be appointed to adjudicate the disputes between the parties under an agreement entered between the petitioner and the respondent, whereby the petitioner was appointed by the respondent as an exclusive stockists of the respondent’s products.

2. The question which arises for consideration in this Petition is as to whether the jurisdiction of this Court under section 11 of the Arbitration and Conciliation Act, 1996 is taken away merely because the respondent is a small scale enterprise falling under the Micro, Small and Medium Enterprises Development Act, 2006 (for short “MSMED” Act), and when no application/reference has been made by the respondent invoking the provisions of Section 18(1) of the MSMED Act.

3. The petitioner is a proprietary concern of Mr. Vijay Porwal, and is engaged in selling and marketing all kinds of kitchen appliances/products, at Pune in Maharashtra at the address shown in the cause title. The respondent is stated to be engaged in the business of manufacturing and supply of several kinds of kitchen appliances, having its manufacturing unit at Himachal Pradesh.

4. The case of the petitioner is that by a letter dated 24th February 2012, (for short “the appointment letter”) the respondent appointed the petitioner as an exclusive stockists for the Maharashtra region (excluding Mumbai and Nagpur) for marketing and promoting the respondent’s products which were marketed under the brand name “Surya City” for the HPCL and IOCL distributors in the State of Maharashtra (excluding Mumbai and Nagpur). This appointment letter issued by the respondent is stated to be the contract between the parties. The appointment letter sets out various terms and conditions permitting written or oral purchase orders to be placed by the petitioner on the respondent for supply of materials to be delivered to the petitioner within seven days of the receipt of such written or oral purchase order. Clause 12 provides that in case of any disputes between the parties the same shall be resolved through arbitration.

5. There is much controversy about this appointment letter, which the petitioner contends to be a concluded contract between the parties. It would thus be appropriate to note the contents of the said letter in its entirety, which read as under:

“Flame Control Industries

Mfg. Of : High Thermal Efficiency L.P. Gas Stoves (Green Label)

Date : 03.02.2010

To,

Aadinath Sales

(Prop: Shailesh Vijay Porwal)

110/02 Shivaji Nagar, Shop No: 03

Near Premier Garage, Pune 411005

Sub: Appointment as exclusive stockiest for region of Maharashtra (Ex: Mumbai & Nagpur)

Respected Sir,

We hereby appoint you as our exclusive stockiest for marketing and promoting the company’s product named & styled as “Surya City” to the BPCL distributors in the state of Maharashtra, on the following terms & condition :

1. We hereby appoint you as our exclusive stockiest for stocking, marketing and selling company’s product to BPCL LPG distributors in the state of Maharashtra (Ex: Mumbai & Nagpur). You shall promote and market company’s product in entire state of Maharashtra.

2. You shall promote and market the products to the various authorized BPCL LPG distributors only in area as mentioned in the Point no.1 and whereas company assures not to appoint / authorized any other person(s) or entity(s) for marketing and selling company’s product in the area allotted to you.

3. Company will within 7 days of the receipt of the written or oral purchase order from you, would arrange to consign its material from its work place (factory), through road transport or any other mode of transport, to be delivered at your warehouse situated in Pune, which you shall receive and stock the same.

4. For dispatch of Material to BPCL distributors, you shall arr