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TMI Blog2023 (11) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... nsh Sharma, Adv., Mr. Amrish Kumar, AOR, Mr. S. Muralidhar, Sr. Adv., Mr. Suresh Dhole, Adv., Ms. Pushpa Shinde, Adv., Dr. Sushil Balwada, AOR, Mr. Kaushal Yadav, Adv., Mr. Nandlal Kumar Mishra, Adv., Mr. Abhishek Yadav, Adv. And Dr. Ajay Kumar, Adv. ORDER 1 Leave granted. 2 The second respondent, M/s S R Technologies (Unit II), which is governed by the provisions of the Micro Small and Medium Enterprises Development Act, 2006 [MSMED Act"], filed a claim before the Micro and Small Enterprises Facilitation Council, Medchal - Malkajgiri. 3 On 28 October 2021, the Facilitation Council decreed the claim in the principal sum of Rs 40,29,862, on which interest with monthly rests at three times the bank rate prevailing as on the date of the aw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eof, learned Single Judge erred in entertaining the writ petition. 6 Having held that the petition was not maintainable, the High Court has nonetheless inquired into whether the claim was barred by the limitation and has come to the conclusion, following the decision of this Court in Gujarat State Civil Supplies Corporation Limited vs Mahakali Foods Private Limited (Unit 2) and Another (2023) 6 SCC 401, that the claim was time barred. 7 We have heard Mr Parag P Tripathi, senior counsel appearing on behalf of the appellant and Dr S Muralidhar, senior counsel appearing on behalf of the second respondent. 8 Section 181 of the MSMED Act provides for a reference to the Facilitation Council. Sub-section (2) of Section 18 provides for the condu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Facilitation Council cannot be entertained by any court unless the appellant has deposited seventy-five per cent of the amount in terms of the award. In view of the provisions of Section 18(4), where the Facilitation Council proceeds to arbitrate upon a dispute, the provisions of the Act of 1996 are to apply to the dispute as if it is in pursuance of an arbitration agreement under sub-section (1) of Section 7 of that Act. Hence, the remedy which is provided under Section 34 of the Act of 1996 would govern an award of the Facilitation Council. However, there is a super added condition which is imposed by Section 19 of MSMED Act 2006 to the effect that an application for setting aside an award can be entertained only upon the appellant d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave no application, which has been affirmed by the Division Bench in the impugned judgment, suffers from a perversity, and hence a petition under Article 226 of the Constitution ought to have been entertained. We cannot accept this submission for the simple reason that Section 18 of the MSMED Act 2006 provides for recourse to a statutory remedy for challenging an award under the Act of 1996. However, recourse to the remedy is subject to the discipline of complying with the provisions of Section 19. The entertaining of a petition under Articles 226/227 of the Constitution, in order to obviate compliance with the requirement of pre-deposit under Section 19, would defeat the object and purpose of the special enactment which has been legislated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny, stand disposed of. ---------------- Foot Notes 1 Reference to Micro and Small Enterprises Facilitation Council.-(1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council. (2) On receipt of a reference under sub-section (1), the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation and the provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 (26 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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