2025:BHC-OS:21881 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL ARBITRATION PETITION (L) NO.25371 OF 2024 Kisan Mouldings Ltd. ...Petitioner V/s.

Micro and Small Enterprises Facilitation and Anr. ...Respondents WITH INTERIM APPLICATION (L) NO.32715 OF 2024 WITH INTERIM APPLICATION (L) NO.32720 OF 2024 WITH INTERIM APPLICATION (L) NO.32718 OF 2024 IN COMMERCIAL ARBITRATION PETITION (L) NO.25371 OF 2024 Ambaco Chemicals and Life Sciences Pvt. Ltd In the matter between ….Applicant Kisan Mouldings Ltd. ...Petitioner V/s.

Micro and Small Enterprises Facilitation and Anr. ...Respondents ______________

Mr. Rashmin Khandekar with Mr. Yohaann Limathwalla, Mr. Amit Tungare, Ms. Akshata Katara & Ms. Fleur D’souza i/b. M/s. Asahi Legal for the Petitioner.

Mr. Sandeep Todi, for Respondent No.2 and for the Applicant in IAL/32715/2024, IAL/32718/2024, IAL/32720/2024.

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CORAM: SANDEEP V. MARNE, J.

RESERVED ON: 13 NOVEMBER 2025.

PRONOUNCED ON: 21 NOVEMBER 2025.

Judgment:

1) The Petitioner has filed the present Petition under the provisions of Section 34 of the Arbitration and Conciliation Act, 1996 (the Act of 1996) challenging the Award dated 14 July 2023 passed by the Micro and Small Enterprises Facilitation Council, Konkan (Facilitation Council). By the impugned Award, the Facilitation Council has allowed Reference Petition No.80 of 2021 filed by Respondent No.2 and has directed the Petitioner to pay to Respondent No.2 outstanding amount of Rs.55,81,817/- alongwith interest as per Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) till realisation of the amount.

2) Petitioner is engaged in the business of manufacture of PVC products. Respondent No.2 approached Petitioner to execute business deal for supply of TPR-02 PVC Heat Stabilize, Tinstab -BTM, Methyl Tin and Stabilizer (Special Grade) for its activity of plastic manufacturing. Petitioner issued purchase orders to Respondent No.2 for supply of material in the year 2011. In the year 2018, Petitioner issued purchase orders dated 31 August 2018, 30 September 2018, 12 November 2018, 22 November 2018, 26 December 2018, 25 January 2019 to Respondent No.2. On receipt of purchase orders, Respondent No.2 made supplies under 17 invoices issued between 15 November 2018 to 13 August 2019. According to Petitioner, Respondent No.2 registered itself as small enterprise under provisions of the MSMED Act on 31 January 2019 i.e. after issuance of purchase orders. It is claimed that on 25 June 2019, Petitioner and Respondent No.2 entered into Memorandum of Understanding (MoU) setting out the manner in which due amounts under the purchase order and invoices were to be paid by Petitioner to Respondent No.2. On 26 August 2020, Respondent No.2 initiated proceedings under Section 18 of the MSMED Act for recovery of amount due to it from the Petitioner. Respondent No.2 claimed that an aggregate sum of Rs.69,82,937/- was payable by the Petitioner, out of which part amount of Rs.14,01,120/- was paid leaving behind outstanding amount of Rs.55,81,817/-. It appears that the Petitioner did not remain present before the Facilitation Council. The Council proceeded to make Award dated 14 July 2023 directing Petitioner to pay outstanding amount of Rs.55,81,817/- together with interest under Section 16 of the MSMED Act. Aggrieved by the Award of Facilitation Council dated 14 July 2023, Petitioner has filed the present Petition under Section 34 of the Act of 1996. By order dated 25 September 2024, this Court adjudicated the issue of delay in filing the Arbitration Petition and ruled that there was no delay in filing of the Petition.

3) Petitioner filed Interim Application (L) No.28278 of 2024 seeking unconditional stay to the Award. By order dated 4 October 2024, this Court directed Petitioner to deposit 75% of the awarded amount in accordance with Section 19 of the MSMED Act of Rs.1,45,39,979.80. Accordingly, Petitioner has deposited the s