SUPREME COURT OF INDIA
TRANSMISSION CORPORATION OF ANDHRA PRADESH LIMITED (A.P. TRANSCO) – Appellant
Versus
HARYANA MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL – Respondent
C.A. No.-010420-010421 - 2024
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO(S). 10420-10421 OF 2024 TRANSMISSION CORPORATION OF ANDHRA PRADESH LIMITED (A.P. TRANSCO) Appellant(s)
VERSUS HARYANA MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL & ORS. Respondent(s)
O R D E R
1. These appeals are against the judgment and order dated 08.09.2022 passed by the High Court of Andhra Pradesh at Amravati in Writ Petition Nos. 34399 and 34412 of 2018.
2. A conspectus of the facts of the case, relevant for disposing of the present appeals, are as follows.
3. On the basis of the contract, the appellant on 25.05.1998 sought supply of certain conductors from respondent no.2. Certain dispute arose out of the contract and hence the matter was referred to arbitration. Arbitration in question was undertaken under the Micro, Small and Medium Enterprises Development Act, 2006 ("the MSME Act") by the Haryana Micro & Small Enterprises Facilitation Council (hereinafter, Facilitation Council) and two awards dated 21.06.2010 came to be passed partly allowing the claims. The appellant challenged the award(s) by filing two applications under Signature Not Verified Digitally signed by KAPIL TANDON Date: S202e6.0c3.17tion 34 of the Arbitration and Conciliation Act, 1996 ("the Reason:
Arbitration Act"). By its orders dated 28.08.20214 and 29.08.2014, the challenge was repelled by the ADJ, Chandigarh and the appeal under Section 37 of the Arbitration Act met the same fate. Even the Special Leave Petition filed against the order passed by the Punjab and Haryana High Court under Section 37 of the Arbitration Act came to be dismissed on 30.07.2018.
4. The respondent no. 2 adopted two distinctive modes in order to seek execution of the award(s). Firstly, by moving an application under Section 17(1)(ii)(e) of the Arbitration Act before the Facilitation Council seeking securement of the amount payable under the claims and also for determining the exact award(s) amount. Though the said application came to be dismissed on 06.09.2017, on review the Council took up the application and passed orders on
11.07.2018 directing as under:
"Case No. 3 The Council had ordered on 21.06.2010 that claim of the supplier is maintainable as per the rate of interest and dates mentioned qua bills mentioned at Sr. No. 58-82 of the Annexure AW-1, to the actual date of payment with compounding as per provision of the Act 34 of 1993. The Council observed that now the Arbitration Case No. 579 of 19.10.2010 filed by the buyer has been dismissed by the District Court, Chandigarh vide order dated 17.04.2018 in respect of the above award passed by the Council regarding the bills at Sr. No. 58-92 and subsequently, the Hon'ble High Court vide order dated 18.05.2018 and Hon'ble Supreme Court vide order dated 06.06.2018 have also dismissed the petition filed by the buyer and the matter has attained finality. The Council further observed that the Amendment under Section 17 of the Arbitration and Conciliation (Amendment) Act, 2015 is applicable with retrospective effect in view of the Hon'ble Calcutta High Court order 'dated 02.03.2016, which was not referred by the supplier in his submissions made in previous application 29.05.2017. Therefore, the provision made under Section 17(ii)(0) read with Section 17 (ii)(e)
of Arbitration and Conciliation (Amendment) Act, 2015 applies to the payment pending towards the buyer. Accordingly, the Council secures the interest amount of Rs. 5,90,86,059/- till 30.06.2018 and with future interest till realization in accordance with provisions of Act 32 of 1993. Further, the council unanimously decided that the Respondent M/s. Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) is restrained and prohibited from receiving payments from Garnishees at Schedule A, Serial No. 1 to 4 and garnishees are hereby restricted to make payment to the Respondent M/s. Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) to the extent of decree amount of Rs. 5,90,86,059 (
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