2023:DHC:1984

$~8 & 9

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of decision-:16^th March, 2023.

+

W.P.(C) 9608/2022, CM APPL. 28679/2022

MALANI CONSTRUCTION COMPANY

..... Petitioner

Through:

Mr.

Jeetender

Gupta,

Adv.

(9810050748)

versus

DELHI INTERNATIONAL ARBITRATION

CENTRE AND ORS

..... Respondents

Through:

Mr.

Anupam

Srivastava,

ASC,

GNCTD and Mr. Vasuh Misra, Adv.

(9730835755) for R-2

Mr. Animesh Kumar, Ms. Krishna

Saroff, Mr. Himanshu Ahuja Advs.

(9654546559) for R-3

9

AND

+

W.P.(C) 9609/2022, CM APPL. 28681/2022

MALANI CONSTRUCTION COMPANY

..... Petitioner

Through:

Mr.

Jeetender

Gupta,

Adv.

(9810050748)

versus

DELHI INTERNATIONAL ARBITRATION

CENTRE AND ORS

..... Respondents

Through:

Mr.

Anupam

Srivastava,

ASC,

GNCTD and Mr. Vasuh Misra, Adv.

(9730835755) for R-2

CORAM:

JUSTICE PRATHIBA M. SINGH

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The present petitions challenge the reference made by the Micro &

Small Enterprises Facilitation Council (hereinafter ‘MSEFC’), vide its order

dated 27th January, 2022. The said reference was in relation to disputes

Digitally Signed

By:DHIRENDER KUMAR

Signing Date:20.03.2023

19:20:13

Signature Not Verified

2023:DHC:1984

between the Petitioner-M/s Malani Construction Company and Respondent

No. 3-M/s LSR Medical Private Limited (hereinafter ‘LSR’) to arbitration

before the Delhi International Arbitration Centre (hereinafter ‘DIAC’) in

MSEFC Case No. 75/2018 and MSEFC Case No. 76/2018.

3. In MSEFC Case No. 75/2018- the case of the Petitioner is that

Respondent No.3/LSR had made certain supplies of goods/ services to the

Petitioner through various invoices for the period 4^th July 2012 to 5^th

March 2015 . Subsequently, on 26th May, 2017, Respondent No. 3/LSR

submitted a memorandum under the Micro Small and Medium Enterprises

Development Act ( hereinafter ‘MSMED Act’) and got registered as a Micro

enterprise. On 15th October 2018, Respondent no. 3/LSR caused a legal

notice to be served upon the Petitioner, demanding a sum of Rs.

1,75,06,370/- towards supply of goods/services to the Petitioner along with

interest under the MSMED Act. On 22nd November, 2018, Respondent No.

3/LSR filed an application before the MSEFC for the recovery of the

outstanding amount along with interest.

4. In MSEFC Case No.76/2018- the case of the Petitioner is that

Respondent No. 3/LSR had made certain supply of goods/ services to the

Petitioner through various invoices for the period 5th November 2012 to

24th February 2015.Subsequently, on 26th May 2017, Respondent No.

3/LSR submitted a Memorandum to obtain registration under the MSMED

Act and got registered as a Micro enterprise. On 10th October 2018,

Respondent No.3 /LSR caused a legal notice to be served upon the Petitioner

, demanding a sum of Rs. 1,92,34,367/-towards supply of goods/services to

the Petitioner along with interest under the MSMED Act. Thereafter, on 22^nd

November 2018, Respondent No. 3/LSR filed an application before the

Digitally Signed

By:DHIRENDER KUMAR

Signing Date:20.03.2023

19:20:13

Signature Not Verified

2023:DHC:1984

MSEFC for the recovery of the outstanding amount along with interest.

5. After the application was filed before the MSEFC on 22nd November,

2018,in both cases, the first hearing was held on 10th January, 2020. The

reference, in both cases, was forwarded for arbitration on 27th January,

2022 by the MSEFC.

6. The DIAC issued notices dated 8th March, 2022,in both cases i.e.in

MSEFC Case No.75/2018 and MSEFC Case No. 76/2018, calling upon the

parties to deposit the fee with respect to the arbitration proceedings. On 1^st

June 2022, the DIAC, via e-mail, informed the parties about the appointment

of a Sole Arbitrator in both cases, at which stage, the present writ petitions

were filed challenging the jurisdiction of the MSEFC and the applicability of

the MSMED Act itself. V