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2022 (6) TMI 365 - HC - Indian LawsWork Contract - termination for breach of contract by the respondent no.4 - validity of proceedings under the MSMED Act - HELD THAT:- It was held in M/S. KONE ELEVATOR INDIA PVT. LTD. VERSUS STATE OF TAMIL NADU AND OTHERS [2014 (5) TMI 265 - SUPREME COURT] that “ the work contract is an individual contract but, by legal fiction, is divided into two parts, one for sale of goods and the other for supply of labour and services.” As held in Principal Chief Engineer vs M/S Manibhai and Bros (Sleeper) [2017 (7) TMI 1419 - SC ORDER], The Supreme Court upheld the Gujarat High Court’s judgment [2016 (6) TMI 1444 - GUJARAT HIGH COURT] on the interpretation of Section 18 of the Act. The High Court held that since the Act is a special legislation and has an overriding effect, the parties governed by it are bound to follow the mechanism provided under Section 18 of the Act. It was further reiterated in Mackintosh Burn Limited v. Micro and Small Enterprises Facilitation Council [2020 (2) TMI 1639 - CALCUTTA HIGH COURT]. The Learned Single Judge rightly observed that “without prejudice to any of the rights and contentions of the writ petitioner, the petitioner shall participate in arbitration and that the Tribunal shall decide on its jurisdiction on inter alia the questions raised by the writ petitioner before entering into other questions.” - Appeal dismissed.
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