2025 Supreme(Online)(AP) 4157
HIGH COURT OF ANDHRA PRADESH FRIDAY ,THE TWENTY FIRST DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRSENT THE HONOURABLE SRI JUSTICE RAVI NATH TILHARI CIVIL REVISION PETITION NO: 2936 OF 2024 Between:
1. M/S REAL FAB INDIA PVT LTD Plot No. 15 Daspalla Hills, Visakhapatnam, Rep. by its Managing Director Koneru Karunakara Rao.
...PETITIONER(S)
AND:
1. M/S RASHTRIYA ISPATH NIGAM LIMITED Visakhapatnam Steel Plant, Visakhapatnam, Rep. by its General Manager, RMI-IP/Construction ...RESPONDENTS Counsel for the Petitioner(s): Y N ANJANEYACHARYULU Counsel for the Respondents:
The Court made the following: ORDER HIGH COURT OF ANDHRA PRADESH * * * *
CIVIL REVISION PETITION No.2936 of 2024 Between:
M/s. Real Fab India Pvt.Ltd., Plot No.15, Daspalla Hills, Visakhapatnam, rep.by its Managing Director Koneru Karunakara Rao ..... PETITIONER AND M/s. Rashtriya Ispath Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam, Rep. by its General Manager, RMI-IP/Construction .....RESPONDENT DATE OF JUDGMENT PRONOUNCED: 21.03.2025 SUBMITTED FOR APPROVAL:
THE HON'BLE SRI JUSTICE RAVI NATH TILHARI
1. Whether Reporters of Local newspapers Yes/No may be allowed to see the Judgments?
2. Whether the copies of judgment may be Yes/No marked to Law Reporters/Journals
3. Whether Your Lordships wish to see the Yes/No fair copy of the Judgment?
_______________________
RAVI NATH TILHARI, J
2 CRP No.2936 of 2024 * THE HON'BLE SRI JUSTICE RAVI NATH TILHARI + CIVIL REVISION PETITION No.2936 of 2024 % 21.03.2025 # M/s. Real Fab India Pvt.Ltd., Plot No.15, Daspalla Hills, Visakhapatnam, rep.by its Managing Director Koneru Karunakara Rao ….Petitioner Versus $ M/s. Rashtriya Ispath Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam, Rep. by its General Manager, RMI-IP/Construction ....Respondent ! Counsel for the Petitioner: Sri Gopal S. Hegde, Senior Counsel, Assisted by Sri Koneru Prabhakara Rao Representing Sri Y.N.Anjaneyacharyulu ^ Counsel for respondent : ---
< Gist :
> Head Note:
? Cases Referred:
1. 1970 (1) SCC 670 2. (1969) 1 SCC 718
3. 2013 SCC OnLine Kar 125
3 CRP No.2936 of 2024 THE HON’BLE SRI JUSTICE RAVI NATH TILHARI CIVIL REVISION PETITION No. 2936 of 2024
JUDGMENT:
Heard Sri Gopal S. Hegde, learned senior counsel, assisted by Sri Koneru Prabhakara Rao, learned counsel, representing Sri Y. N. Anjaneyacharyulu, learned counsel for the petitioner.
2. This civil revision petition under Article 227 of the Constitution of India has been filed by the petitioner-M/s.Real Fab India Private Limited, Plot No.15, Daspalla Hills, Visakhapatnam, represented by its Managing Director-Koneru Karunakara Rao, the claimant in Claim No.21C/IFC/2013/19266, being aggrieved from the Order dated 17.09.2024 passed in CEP GR Nos.1694 and 1772 of 2024, by the Judge, Special Court for trial and disposal of Commercial Disputes, Visakhapatnam (in short ‘Special Court’).
3. The prayer in the civil revision petition is to set aside the Order dated
17.09.2024 and to restore the petition on the file of the Special Court with effect from the date it was presented for enforcement and to proceed further in accordance with law in a time bound manner and pass such other order/orders as deemed fit and proper by this Court.
4. By Order dated 17.09.2024, under challenge, the learned Special Judge rejected the execution petition as not maintainable.
5. The petitioner herein is a Small Scale Industrial Undertaking holding registration No.01-20-03216-PMT-SSI, dated 24.03.1984. The petitioner was
4 CRP No.2936 of 2024 the claimant in the Case No.21C/IFC/2013/19266. An Award dated 25.10.2018 was passed in its favour by Andhra Pradesh Micro and Small Enterprises Facilitation Council at Vijayawada (in short ‘Council’) established under Section 20 of the Micro, Small and Medium Enterprises Development Act, 2006 (in short ‘MSMED Act’). The claimant made a claim of Rs.22,74,31,117/- against the respondent herein, M/s. Rashtriya Ispath Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam, represented by its General Manager in short ‘RINL’).
6. The operative part of the Award dated 25.10.2018 is as under: “1. The reference petition No.21C/IFC/2013/19226 is allowed in terms of prayer.
2. The Judgment Debtor is required to pay to the claimant an amount of Rs.11,79,38,792/- (Rupees Eleven Crores Seventy-Nine Lakhs Thirty-Eight Thousand and Seven Hundred and Ninety Two Only) as principle and interest on 12,54,38,792/- (Rupees Twelve Crores Fifty Four Lakhs Thirty Eight Thousand Seven Hundred and Ninety Two only) as per the MSMED Act, 2006 from the appointed day i.e., 45 days from the Date of Termination i.e., 1.11.2010 to 21.09.2017 and interest on principle amount of Rs.11,79,38,792/- (Rupees Eleven Crores Seventy-Nine Lakhs Thirty-Eight Thousand and Seven Hundred and Ninety Two Only) from 22.09.2017 to till date as per the MSMED Act, 2006.
3. The Principle & Interest amount is to be paid by the Judgment Debtor to the Claimant within a period of one month from the date of receipt of this order.
4. No order as to cost.
5. The case is disposed of and closed.”
5 CRP No.2936 of 2024
7. The respondent-RINL, filed petition-CAOP.No.16 of 2019 under Section 34 of the Arbitration and Conciliation Act, 1996 (in short ‘Arbitration Act’) to set aside the award dated 25.10.2018.
8. The Special Court in the light of the contentions raised before it, framed the following points for determination:
1. “Whether the award filed in the case attested by the Assistant Director/Registrar, APMSEFC, is sufficient compliance with Section 31 of the Arbitration Act and what is its effect?
2. Whether the Council has jurisdiction or not?
3. Whether the contract in question is a works contract and therefore the benefits under the MSMED Act are not applicable?
4. Whether the award suffers from any of the infirmities under Section 34 (2)
of the Act?”
9. On Point No.1, the Special Court recorded that the signed copy of the award was not brought on record even by the claimant. No party seemed to have taken steps to ascertain whether the award was signed by all the Members and the Chairman of the Council and if so, to get a copy thereof. In the circumstances, the award as filed with the