IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE VIVEK RUSIA &

HON'BLE SHRI JUSTICE PRADEEP MITTAL

nd

ON THE 2 OF DECEMBER, 2025 MISC. PETITION No. 6226 of 2019 M/S STESALIT LIMITED Versus M/S PATEL FAB MACHINERY MANUFACTURER AND OTHERS Appearance:

Shri Vikram Johri and Shri Vijay Kumar- Advocates for the petitioner.

Shri Brajesh Kumar Dubey - Advocate for the respondent No.1.

ORDER Per: Justice Vivek Rusia The petitioner has filed this present petition under Article 227 of the Constitution of India, being aggrieved by the order dated 04.09.2019 passed th in MJC-AV 23/2019 by the 20 Civil Judge, Class-I, Bhopal (M.P.), whereby application for waiver of deposit of 75% of the decreetal amount mentioned in the award dated 20.03.2018 passed by the M.P. Micro, Small and Medium Enterprises Facilitation Council/Respondent No.2, has been disallowed.

Facts of the case, in short, are as under:-

1. The petitioner is a company registered under the Companies Act having its registered office at 712 A, 7th Floor, Shakuntala Apartments, 59, Nehru Place, New Delhi- 19 and is engaged in developing and manufacturing high-end electronic and electric products for Locomotives, Coaches etc.

2. The respondent No.1 approached the M.P. Micro, Small and Medium Enterprises Facilitation Council/Respondent No.2 for recovery of Rs.86,28,000/- from the petitioner under the provisions of The Micro, Small and Medium Enterprises Development Act, 2006 (in short "MSME Act, 2006").

3. After hearing learned counsel for both the parties, the learned Facilitation Council passed an award dated 20.03.2018 in favour of respondent No.1(applicant before the Facilitation Council), by directing the petitioner (respondent before the Facilitation Council) to pay the remaining amount of Rs.14,35,825/- with interest of Rs.7,19,223/-.

4. Being aggrieved by the aforesaid award, the petitioner preferred an appeal under Section 19 of the MSME Act, 2006 before the Civil Court, Bhopal (M.P.), without deposit of 75% of the decreetal amount as mentioned in the order dated 20.03.2018 passed by the learned Facilitation Council along with an application seeking waiver of aforesaid deposit of 75% of th decreetal amount. Therefore, vide order dated 04.09.2019, the learned 20 Civil Judge, Class-I, Bhopal (M.P.) rejected the application and directed the petitioner to deposit 75% of the decreetal amount on the next date of hearing, failing which, the appeal shall be dismissed.

5. The petitioner approached this Court by way of a present Miscellaneous Petition and got an interim relief vide order dated 16.12.2019 to the effect that no coercive action shall be taken against the petitioner, pursuant to the award dated 04.09.2019.

Submissions of learned counsel for the petitioner and the respondents.

6. Learned counsel for the respondent No.1 raised an objection regarding the maintainability of the Miscellaneous Petition in view of the law laid down by the Apex Court in Civil Appeal No.7491/2023 in the case of "M/S India Glycols Limited and Another Vs. Micro and Small Enterprises Facilitation Council, Medchal- Malkajgiri and Others [(2025) 5 SCC 780]" to which, learned counsel for the petitioner replied by arguing that by virtue of Section 238 of the Insolvency and Bankruptcy Code, 2016, the Code has overriding effect. Section 238 of the Code provides that "the Code shall have overriding effect, nothwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law". Therefore, this Court vide order dated 10.09.2025 has rejected such objection of learned counsel of the respondent No.1.

7. Learned counsel for the petitioner submits that the petitioner-

Company has been facing insolvency proceedings since 20.11.2017, and the moratorium was imposed on it. The adjudicating Authority was appointed on 19.12.2017. The order of the MSME Facilitation Council was passed on 20.03.2018. On 20.07.2018, the rev