W.P. No. 18925 of 2022

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 12.10.2022

CORAM

THE HON'BLE MR. JUSTICE P.D. AUDIKESAVALU

W.P. No. 18925 of 2022

and

W.M.P. No. 18262 of 2022

Dvara Solutions Private Limited,

10^th Floor, Phase 1, IIT-Madras Research Park,

Kanagam Village,

Taramani,

Chennai – 600 113,

Tamil Nadu.

… Petitioner

-vs-

1. The Chairperson,

Micro and Small Enterprises Facilitation Council, Chennai/

Industries Commissioner and Director of Industries and Commerce,

Guindy,

Chennai – 600 032.

2. Sambandh Finserve Private Limited,

Represented by its Authorised Signatory,

Plot No. O-4/9, Civil Township, PS,

Raghunathpalli,

Roukerla,

Sundargarh – 769 004.

... Respondents

Prayer:- Writ Petition filed under Article 226 of the Constitution of India, 1950,

praying to issue a Writ of Certiorarified Mandamus, calling for the records of the

First Respondent contained in order dated 27.08.2021 in MSEFC/CR/57/2021

Online Application No. TN02E0164019/S/00001, quash the same as arbitrary,

unjust and illegal and consequently direct the First Respondent to hear and

decide the Online Application No. TN02E0164019/ S/00001 on merits.

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W.P. No. 18925 of 2022

For Petitioner

:

Mr. Pawan Jhabakh

For Respondents

:

Mr. L.S.M.Hasan Fizal,

Additional Government Pleader (for R1)

No appearance (for R2)

O R D E R

Heard Mr. Pawan Jhabakh, Learned Counsel for the Petitioner and

Mr. L.S.M.Hasan Fizal, Learned Additional Government Pleader appearing for

the First Respondent and perused the materials placed on record, apart from the

pleadings of the parties.

2.

Though the Second Respondent has been served, it has not entered

appearance either in person or through counsel.

3.

The Petitioner had made a claim in Case No. MSEFC/CR/57/2021 under

Section 18(1) of the Micro, Small and Medium Enterprises Development Act,

2006 (hereinafter referred to as 'the MSMED Act' for short) claiming payment of

Rs. 87,47,316/- along with interest from the Second Respondent towards

remaining amount due for goods supplied with interest calculated in terms of

that Act, in which an Order in No. MSEFC/CR/57/2021 dated 27.08.2021 was

passed holding that it did not have territorial jurisdiction in the matter as the

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W.P. No. 18925 of 2022

invoice has been raised in Bangalore, which is impeached in this Writ Petition.

4.

Learned Counsel for the Petitioner contends that inasmuch as the office of

the Petitioner is located at Chennai, the First Respondent has territorial

jurisdiction to entertain the matter, but on account of technical glitches, the

Petitioner could not join during video-conferencing to properly explain the same

to the First Respondent. It is fervently pleaded that in such circumstances, the

impugned order may be set aside and the Petitioner may be afforded an

opportunity of hearing before the First Respondent as the restrictions for COVID

have been subsequently lifted.

5.

Having due regard to the circumstances explained by the Petitioner for

inability to effectually represent its case during the COVID pandemic before the

First Respondent, this Court, without expressing any view on the correctness or

otherwise of the the impugned Order No. MSEFC/CR/57/2021 dated 27.08.2021

passed by the First Respondent, is inclined to set aside the same and remit the

matter back to be decided afresh by the First Respondent following the

prescribed procedure in accordance with law.

6.

In such circumstances, the claim made by the Petitioner is restored to the

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W.P. No. 18925 of 2022

file of the First Respondent, who shall list the matter for next hearing on

07.12.2022 after issuing due notice to the Petitioner and the Second Respondent

in that regard and if the First Respondent is not able then