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2019 (2) TMI 2082 - DELHI HIGH COURTReferring a dispute for arbitration under the aegis of Delhi International Arbitration Centre - in the agreement entered into between the appellant and respondent No.2 (M/s Slipco Constructions Private Limited), there was an independent arbitration clause - HELD THAT:- It is clear that once a reference was made to the Felicitation Council and the Council conducted conciliation proceedings as contemplated under sub-Section (2) of Section 18 and the appellant submitted to the conciliation, statutory in nature under Section 18(2), the necessary statutory consequence would be that on failure of the conciliation, the matter has to be referred for arbitration under sub-Section (3) of Section 18 and the impugned order only refers to the action taken by the Felicitation Council for reference to the arbitration on failure of the conciliation. The learned writ Court has rightly rejected the contention of the appellant to the effect that once there was an arbitration agreement, therefore, the arbitration should have been as per the arbitration agreement. The MSMED Act is applicable in the dispute in question, in view of a decision rendered in the case of Bharat Heavy Electricals Limited vs. The Micro and Small Enterprises Facilitations Centre& Anrs. [2017 (9) TMI 2004 - DELHI HIGH COURT] and the appellant themselves having chosen to take recourse to the remedy under the MSMED Act are bound by the entire statutory provision contained in Section 18. The appellant had two options, either to take recourse to the arbitration agreement and insist on invoking the arbitration clause but having chosen to take recourse to the statutory remedy under the MSMED Act, the entire process, statutory in nature contemplated under the said Act, i.e., Section 18 has to be complied with and in refusing to interfere into the matter on such consideration, in our considered view, no error has been committed by the learned writ Court. Appeal dismissed.
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