IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P. SAM KOSHY, N. TUKARAMJI, JJ.
Transmission Corporation of Andhra Pradesh Limited - Appellant
Versus
M/s. Gowri Shankar Cable Industries - Respondent
Civil Miscellaneous Appeal Nos. 940, 941, 943, 944, 946, 952, 953, 954 of 2015
Decided On : 21-05-2025
| Table of Content |
|---|
| 1. initial case overview and introduction of parties. (Para 1 , 2) |
| 2. facts of the case and chronology of events. (Para 3 , 4 , 5 , 6 , 7 , 8) |
| 3. arguments regarding limitation and statutory interpretation. (Para 9 , 10 , 12 , 13) |
| 4. nature of the relationship and agreements between parties. (Para 15 , 16 , 17) |
| 5. provisions of the acts facilitating small scale industries. (Para 18 , 19) |
| 6. judicial interpretation of limitation issues. (Para 20 , 21) |
| 7. court's analysis on limitation affecting the case. (Para 22 , 23 , 24) |
| 8. final decision and closure of the case. (Para 25 , 26) |
JUDGMENT :
P. Sam Koshy, J.
1. Since the issue raised in the instant appeals is one and the same, they are taken up for analogous hearing and are decided by way of this common judgment.
2. Heard Mr. Vikram Pooserla, learned Senior Counsel representing Mr. Anup Koushik, learned counsel for the appellants and Mr. P. Sri Raghu Ram, learned Senior Counsel representing Mr.K. Raghu Babu, learned counsel for respondent No.1.
3. For convenience, the facts in Civil Miscellaneous Appeal No.940 of 2015 are discussed hereunder.
4. The instant is an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (briefly, the ‘A&C Act’ hereinafter). The challenge is to the order dated 20.07.2015, in Arb.OP.No.1641 of 2003, passed by the learned XIV Addl. Chief Judge, (Fast Track Court), City Civil Court, Hyderabad.
5. Vide the impugned order; the learned XIV Addl. Chief Judge had dismissed the petition filed under Section 34 of the A&C Act by the appellant herein affirming the award dated 16.11.2002, in Case No. 29/3/1/608, passed by respondent No.2 / The A.P. Industry Facilitation Council (for short, the ‘Facilitation Council’).
6. The facts relevant for adjudication of the instant appeal are that the appellant had made certain purchases of AAA and ACSR Conductors from respondent No.1 somewhere in the year 1996. The entire demand as raised by the appellant was duly supplied by respondent No.1. However, after the supply was made, the appellant failed in honoring the payment schedule and there was a considerable delay in making the payments and, in addition, there were some bills also which were outstanding. The respondent No.1, thereafter, filed a claim petition before the Facilitation Council for an amount of Rs.32,63,673/- along with interest and also directed the appellant to pay the balance of outstanding amount. The Facilitation Council after hearing both the parties, vide its award dated 16.11.2002, allowed the claim petition to the extent of directing the appellant to pay an amount of Rs.24,14,382/- and also awarded 10% simple interest post award on the said amount.
7. This award of the Facilitation Council was subjected to challenge by the appellant under Section 34 of the A&C Act before the learned XIV Addl. Chief Judge. The learned XIV Addl. Chief Judge dismissed the said petition, leading to filing of the instant appeal under Section 37 of the A&C Act.
8. The claim petition in the instant case was filed by respondent No.1 before the Facilitation Council on 10.05.2001.
9. The primary challenge by the appellant before the Facilitation Council as also before the learned XIV Addl. Chief Judge was that the claim petition was barred by limitation. The Facilitation Council had not accepted the said objection primarily on the ground that neither the Interest on Delayed Payments To Small Scale and Ancillary Industrial Undertakings Act, 1993 (for short, the ‘Act of 1993’), nor does the Micro, Small and Medium Enterprises Development Act, 2006 (for short, the ‘Act of 2006’) prescribe any period of limitation for any of the parties to approach Facilitation Council in respect of their claim. The same view was also accepted by the learned XIV Addl. Chief Judge while dismissing the Section 34 petition.
10. In the instant appeal, under Section 37 of the A&C Act also, the contention of the learned Senior Counsel for the appellant is that the aspect of limitation ha
AI
The Limitation Act applies to claims under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, despite the latter lacking a specific limitation period.
Facilitation Council cannot reject reference under MSMED Act Section 18(1) on limitation; must attempt conciliation under 18(2) even for time-barred claims, as non-adjudicatory; limitation applies on....
The court determined that delay in filing a Section 34 application was justifiable due to the appellant's prior bona fide pursuit of a Writ Petition and the impact of COVID-19 on limitation periods.
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 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....
The Facilitation Council must adhere to the procedural requirements of both the MSMED Act and the Arbitration Act, and failure to do so renders any award issued a nullity, which can be challenged out....
The High Court cannot entertain writ petitions challenging awards of the Micro and Small Enterprises Facilitation Council without the mandatory deposit of 75% of the awarded amount as per Section 19 ....
The court affirmed that claims in arbitration must be asserted within the limitation period, and undue delays in invoking arbitration can render claims invalid.
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